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<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 12pt; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; border-bottom: Black 2pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
filed with the Securities and Exchange Commission on February 16, 2021</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Registration
No. 333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 16pt"><B>UNITED
STATES</B></FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 16pt"><B>SECURITIES
AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Washington,
D.C. 20549</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><B>FORM
S-1</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>REGISTRATION
STATEMENT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>UNDER</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>THE
SECURITIES ACT OF 1933</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 24pt"><B>AppTech
Corp</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Exact
Name of Registrant as Specified in Its Charter)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Wyoming</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 32%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>7389</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 32%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>66-0847995</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(State or other jurisdiction
    of<BR>
    incorporation or organization)</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Primary Standard
    Industrial<BR>
    Classification Code Number)</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(I.R.S. Employer<BR>
    Identification No.)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>5876
Owens Avenue</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Suite
100</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Carlsbad,
California 92008</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(760)
707-5959</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Address,
including zip code, and telephone number, including area code, of registrant&rsquo;s principal executive offices)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Luke
D&rsquo;Angelo</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Chief
Executive Officer</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>5876
Owens Avenue</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Suite
100</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Carlsbad,
California 92008</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(760)
707-5959</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Name,
address, including zip code, and telephone number, including area code, of agent for service)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Copies
to:</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Andrew M. Tucker</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Nelson Mullins Riley &amp; Scarborough LLP</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>101 Constitution Ave NW, Suite 900</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, DC 20001</B></P>

<P STYLE="font: 10pt/107% Times New Roman, Times, Serif; margin: 0 0 8pt; text-align: center"><B>Telephone: +1-202-689-2800</B>&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Approximate
date of commencement of proposed sale to public: <B>As soon as practicable after this Registration Statement is declared effective.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under
the Securities Act of 1933, check the following box. &#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the
following box and list the Securities Act registration statement number of the earlier effective registration statement for the
same offering. &#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list
the Securities Act registration statement number of the earlier effective registration statement for the same offering. &#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list
the Securities Act registration statement number of the earlier effective registration statement for the same offering. &#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo;
&ldquo;smaller reporting company&rdquo; and &ldquo;emerging growth company&rdquo; in Rule 12b-2 of the Exchange Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 20%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large accelerated filer</FONT></TD>
    <TD STYLE="width: 20%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD>
    <TD STYLE="width: 20%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated filer</FONT></TD>
    <TD STYLE="width: 20%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-accelerated filer</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller reporting company</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging growth company</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 7(a)(2)(B) of the Securities Act.
&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CALCULATION
OF REGISTRATION FEE</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title of Each Class of</B><BR>
<B>Securities to Be Registered</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Proposed Maximum</B><BR>
<B>Aggregate Offering</B><BR>
<B>Price (1)</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Amount of</B><BR>
<B>Registration</B><BR>
<B>Fee (2)</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common Stock, par value $0.001 per share</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,636.50</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify; text-indent: 0pt; width: 0.3in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="padding: 0pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Estimated solely for the purpose of calculating the amount of the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended. Includes the aggregate offering price of the additional shares that the underwriters have the option to purchase to cover over-allotments, if any.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="padding: 0pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Registration fee will be paid when registration statement is first publicly filed under the Securities Act of 1933, as amended</FONT><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until
the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become
effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until this Registration Statement shall
become effective on such date as the Securities and Exchange Commission, acting pursuant to such Section 8(a), may determine.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell
these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: red"><B>PRELIMINARY
    PROSPECTUS</B></FONT></TD>
    <TD STYLE="width: 50%; text-align: right"><P STYLE="margin: 0pt 0; font: 10pt/107% Times New Roman, Times, Serif; color: red">Subject
                                         to completion, dated February &nbsp;&nbsp;&nbsp;&nbsp;, 2021</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Shares</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>APPTECH
CORP.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><IMG SRC="image_001.jpg" ALT="">&nbsp;</FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: center; color: Red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Common
Stock</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.4in">We are offering &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock. Our common stock is currently traded on the OTC Markets under the Symbol &ldquo;APCX&rdquo;. On February
12, 2021, the last reported sale of our common stock was $2.80 (or $ as adjusted for a reverse stock split of 1-for- ). We intend
to apply to list our common stock on The Nasdaq Capital Market under the symbol &ldquo;APCX&rdquo;. [We will not proceed
with this offering in the event the common stock is not approved for listing on Nasdaq.]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Investing
in our common stock involves a high degree of risk. Before buying any shares, you should carefully read the discussion of the
material risks of investing on our common stock under the heading &ldquo;Risk Factors&rdquo; be that are described in the &ldquo;Risk
Factors&rdquo; beginning on page 11 of this prospectus.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
passed on the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 0pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Per
    Share</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD COLSPAN="3"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Public offering price</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD COLSPAN="3"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Underwriting discount (1)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD COLSPAN="3"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Proceeds, before expenses, to us
    </FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD COLSPAN="9" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">See
    &ldquo;Underwriters: beginning on page <FONT STYLE="background-color: White">72</FONT> of this prospectus for additional
    information regarding the compensation payable to the underwriters.</FONT></TD></TR>
<TR>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 64%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 13%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 13%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have granted a [45-day] option to the underwriters to purchase up to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;additional
shares of common stock solely to cover over-allotments, if any. If the underwriters exercise the option in full, the total underwriting
discounts and commissions payable by us with be $ and the total proceeds to us, before expenses, will be $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Delivery
of the shares of common stock is expected to be made on or about 2021.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
date of this prospectus is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2021</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>TABLE
OF CONTENTS</U></B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-top: 3pt; padding-bottom: 3pt; border-bottom: Black 1.5pt solid">Page</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%; text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#prospectus">PROSPECTUS SUMMARY</A></FONT></TD>
    <TD STYLE="width: 10%; text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#risk">RISK FACTORS</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">11</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#special">SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">26</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#dividend">DIVIDEND POLICY</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">30</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#capitalization">CAPITALIZATION</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">31</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#dilution">DILUTION</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">32</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#selected">SELECTED FINANCIAL INFORMATION</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">34</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#managements">MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">35</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#business">BUSINESS</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">41</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#management">MANAGEMENT</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#executive">EXECUTIVE COMPENSATION</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">56</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#directtor">DIRECTOR COMPENSATION</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">58</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#certain">CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">60</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#principal">PRINCIPAL STOCKHOLDERS</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">62</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#description">DESCRIPTION OF CAPITAL STOCK</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">63</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#shares">SHARES ELIGIBLE FOR FUTURE SALE</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">65</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#underwrites">UNDERWRITERS</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">72</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#legal">LEGAL MATTERS</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">74</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#experts">EXPERTS</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">74</FONT></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 3pt; padding-bottom: 3pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#ehere">WHERE YOU CAN FIND MORE INFORMATION</A></FONT></TD>
    <TD STYLE="text-align: right; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">74</FONT></TD></TR>
</TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Neither
we nor the underwriters have authorized anyone to provide you with information different from, or in addition to, that
contained in this prospectus, any amendment or supplement to this prospectus or any free writing prospectus prepared by or on
behalf of us or to which we have referred you. We and the underwriters take no responsibility for, and can provide no assurances
as to the reliability of, any information that others may give you. This prospectus is not an offer to sell, not is it seeking
an offer to buy, these securities in any jurisdiction where the offer or sale is not permitted. The information contained in this
prospectus or in any free writing prospectus is only accurate as of its date, regardless of its time of delivery or the time of
any sale of our common stock. Our business, financial condition, results of operations and prospects may have changed since that
date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
own or have rights to various trademarks, service marks and trade names that we use in connection with the operation of our business.
This prospectus may also contain trademarks, service marks and trade names of third parties, which are the property of their respective
owners. Our use or display of third parties&rsquo; trademarks, service marks and trade names or products in this prospectus is
not intended to, and does not imply a relationship with, or endorsement or sponsorship by us. Solely for convenience, the trademarks,
service marks and trade names referred to in this prospectus may appear without the &reg;, TM or SM symbols, but the omission
of such references is not intended to indicate, in any way, that we will assert, to the fullest extent under applicable law, our
rights or the right of the applicable owner of these trademarks, service marks and trade names.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>For
investors outside the United States</B>: Neither we nor any of the underwriters have done anything that would permit this offering
or possession or distribution of this prospectus or any free writing prospectus we may provide to you in connection with this
offering in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside the United
States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the
offering of the shares of our common stock and the distribution of this prospectus and any such free writing prospectus outside
of the United States.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Numerical
figures included in this prospectus have been subject to rounding adjustments. Accordingly, numerical figures shown as totals
in various tables may not be arithmetic aggregations of the figures that precede them.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
market data and certain other statistical information used throughout this prospectus are based on independent industry publications,
governmental publications, reports by market research firms or other independent sources that we believe to be reliable sources.
Industry publications and third-party research, surveys and studies generally indicate that their information has been obtained
from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. We are
responsible for all of the disclosure contained in this prospectus, and we believe these industry publications and third-party
research, surveys and studies are reliable. While we are not aware of any misstatements regarding any third-party information
presented in this prospectus, their estimates, in particular, as they relate to projections, involve numerous assumptions, are
subject to risks and uncertainties, and are subject to change based on various factors, including those discussed under the section
entitled &ldquo;Risk Factors&rdquo; and elsewhere in this prospectus. Some data are also based on our good faith estimates.</FONT></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="prospectus"></A>PROSPECTUS
SUMMARY</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
summary highlights information contained in greater detail elsewhere in this prospectus. Because it is a summary, it does not
contain all of the information that you should consider in making your investment decision. Before investing in our common stock,
you should carefully read this prospectus in its entirety, including the &ldquo;Risk Factors,&rdquo; &ldquo;Special Note Regarding
Forward Looking Statements,&rdquo; and &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of
Operations&rdquo; and the financial statements and the notes to those financial statements in each case included in this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
used in this prospectus, unless the context otherwise requires, references to &ldquo;AppTech,&rdquo; the &ldquo;company,&rdquo;
&ldquo;we,&rdquo; &ldquo;us&rdquo; and &ldquo;our&rdquo; refer to AppTech Corp., and its wholly owned, consolidated subsidiaries,
or either or all of them as the context may require.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Company</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Overview&nbsp;</B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We intend to simplify
and streamline digital financial services for corporations, small and midsized businesses (&ldquo;SMBs&rdquo;) and consumers
through innovative payment processing and digital banking technologies that complement our core merchant services capabilities.
Our company&rsquo;s merchant services provide financial processing for businesses to accept cashless and/or contactless payments,
such as credit cards, ACH, wireless payments, and more. Our patented, exclusively licensed and/or proprietary merchant services
software offers or will offer integrated solutions for frictionless digital and mobile payment acceptance; we are supplementing
these capabilities with licensed software that solves for multi-use case, multi-channel, API-driven, account-based issuer processing
for card, digital tokens, and payment transfer transactions. Our innovative and scalable business model allows for expansive white
labeling, SaaS, and embedded payment solutions that will drive the digital transformation of financial services and generate diverse
revenue streams for our company.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe the financial services industry is going through a period of intensive change driven by the advancement of technology,
the adaption to societal changes and the rapid rise of contactless transactions. End-users are beginning to expect ease of use
and an enhanced user experience in all of their daily financial transactions. In this rapidly evolving digital marketplace merchants
have broad and frequently changing requirements for payment processing. Our flexible and configurable technologies enable us to
provide solutions that meet each merchant&rsquo;s current needs while providing scope to solve for their future development plans
and opportunities. By taking a holistic view of all aspects of our clients&rsquo; business, including risk, volume, user experience,
integration capabilities and technical needs, we are able to create optimal and extensible processing solutions. Merchants are
now concerned with achieving added-value and no longer make payment partner decisions solely on lowest processing prices. While
we are able to offer extremely competitive pricing, we believe the value we create for merchants, SMEs and regional banking institutions
through our technology, services and consultative approach will create true differentiation from our competitors. As we shift
our focus technological advancement, we will continue to aggressively seek new merchants.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Through exclusive
licensing and partnership agreements, we believe we will become leaders in the processing technology industry by supporting digital,
tokenized, multi-channel, embedded API-driven transactions. We will augment this position through the integration of our merchant
services and secure text payment solution with extensive digital account-based and multi-channel issuer payment processing capabilities.
This will enable us to provide our merchant customers an end-to-end payment acceptance and digital banking solution and will power
straight-through processing and embedded payments opportunities in the B2B space.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
key to the company&rsquo;s success and market penetration relies on the continued development of enterprise-grade, patent protected
<FONT STYLE="letter-spacing: -0.05pt">software </FONT>f<FONT STYLE="letter-spacing: -0.05pt">or</FONT> SMS text payments via a
mobile device. Our patented technology <FONT STYLE="letter-spacing: -0.05pt">manages</FONT> text <FONT STYLE="letter-spacing: -0.05pt">messaging
for processing payments notification,</FONT> response, <FONT STYLE="letter-spacing: -0.05pt">authentication, marketing, advertising,
</FONT>information queries <FONT STYLE="letter-spacing: -0.05pt">and</FONT> reports. <FONT STYLE="letter-spacing: -0.05pt">Our
</FONT>software platforms will extend <FONT STYLE="letter-spacing: -0.05pt">merchants&rsquo;</FONT> marketplace <FONT STYLE="letter-spacing: -0.05pt">creating
new</FONT> avenues and channels to request and <FONT STYLE="letter-spacing: -0.05pt">receive frictionless, digital payments and
engage end-users utilizing a familiar, convenient and widely adopted technology.</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">Once
an account is established through our multi-currency digital wallet, internet connectivity or a specific application are not required
to process payments between merchants and end-users. These features will be particularly beneficial for the unbanked and underbanked
individuals in developing and emerging markets where access to internet on a mobile device and modern banking institutions may
not be readily available. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe <FONT STYLE="letter-spacing: -0.05pt">our</FONT> technologies <FONT STYLE="letter-spacing: -0.05pt">will greatly</FONT>
increase the adoption of mobile payments and alternate banking solutions in a sector that appears to have little alternative but
to adapt and migrate towards new technologies that facilitate convenient and safe contactless payments. <FONT STYLE="letter-spacing: 0.05pt">To
</FONT>survive and <FONT STYLE="letter-spacing: -0.05pt">succeed in this environment, businesses may </FONT>need to adopt <FONT STYLE="letter-spacing: -0.05pt">new
technologies</FONT> to engage, communicate and process payments <FONT STYLE="letter-spacing: -0.05pt">with </FONT>their <FONT STYLE="letter-spacing: -0.05pt">customers.
</FONT>We believe that by embracing technological advancement in the payment and banking industries we are aligned in the <FONT STYLE="letter-spacing: -0.05pt">precise
direction that our current and prospective customer base is trending towards, and we intend for </FONT>our current and future
products to be at the forefront in providing solutions that enable and facilitate these anticipated changes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">We
are also expanding upon our financial technology foundation into the telehealth and remote patient monitoring sectors in response
to cultural shifts and new healthcare demands of society. We have identified a need for the integration of payment acceptance
technologies into the burgeoning telehealth sector. We believe this sector&rsquo;s focus is on providing health-related telecommunications
but how fees and payments for these services are requested and accepted is being overlooked. We intend to fill this identified
shortfall by developing technologies and payment-related services to aid companies providing telehealth solutions. Through a strategic
partnership, help bring to market personal emergency response and remote patient monitoring services and equipment help ensure
the safety of the elderly and injured or sick patients while providing peace of mind to family members, care givers and retirement
communities. These solutions increase patient&rsquo;s access to comprehensive care options and allow medical teams to intervene
in a timely manner to avoid more serious health concerns. By providing financial and administrative services we will have the
opportunity to receive substantial revenue share from recurring revenue billed through Medicare with the potential for substantial
growth and substantial profit margins. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Industry
Background</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The financial technology
and transaction processing industries are an integral part of today&rsquo;s worldwide financial structure. The electronic payments
industry is massive, with growth fueled by powerful long-term trends that continue to increase the acceptance and use of electronic
payments compared to paper-based payments. According to The Nilson Report, purchase volume on credit, debit and prepaid cards
in the United States was approximately $6.1 trillion in 2018 and is estimated to reach nearly $10.4 trillion by 2027, a compound
annual growth rate, or CAGR, of 6.1%.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
payment processing industry continues to evolve rapidly, based on the application of new technology and changing customer needs.
Changes in technology allow for new payment methods, such as mobile payments, and merchants increasingly need new methods of interacting
with their customers to ensure loyalty and repeat business. As consumers continue to integrate mobile devices into their lives,
there will be increased demand to conduct business on these devices. According to Businesswire, the global mobile payment market
was valued at $1449.56 billion in 2020 and is expected to reach over $5399.6 billion in 2026 with growth at a CAGR of 24.5% over
the forecast period (2021 - 2026).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">GSMA
Intelligence reported in 2019 that globally, there are more than 9.2 billion mobile connections and 5.1 billion mobile subscribers
with text messaging capabilities. Statista asserted that just over 3.9 billion of these devices have access to mobile internet.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">According
to 2019 PEW Research Report, even though consumers remain somewhat skeptical of newer financial technologies growth in the mobile
payment sector persists. Consumers&rsquo; age and the technologies&rsquo; reliance on traditional financial systems may explain
lack of mobile payment adoption. As businesses adopt mobile payment solutions in response to user demand, they need to better
educate their customers on the security of mobile payments. According to creditcards.com, consumers need to recognize that mobile
payment methods offered by major providers are more secure than physical cards and cash because mobile wallets use methods such
as encryption and tokenization to mask payment card account numbers as you enter them and when you pay. Nonetheless, consumer
satisfaction is high with mobile payments. In fact, Accenture reports that most mobile payments users are satisfied&mdash;76%
are happy using mobile banking apps to make payments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Telehealth uses
information and communication technology to overcome distance barriers and improve access to healthcare. According to Fortune
Business Insights, the global telehealth market size was valued at $61.40 billion in 2019 and is projected to reach $559.52 billion
by 2027, exhibiting a CAGR of 25.2% during the forecast period. Reports and Data reported the remote patient monitoring market
is forecast to reach $2.14 billion by 2027 with a CAGR of 14.1%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Competitive Strengths</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe our
adaptable technology and holistic product offering differentiate ourselves from our competitors. Our products, many of which have
the ability to be launched in a matter of months, help to eliminate much of our sector&rsquo;s reliance on legacy payment rails
and financial systems. By not being restricted by antiquated foundational technology the applicability and frictionless of our
products will have the ability to have an immediate impact on digital financial services industry. Further, while technologically
advanced, the products will be comfortable to end-users allowing for a seamless adoption.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The patent protection
to some of our products is also not commonplace within the fintech industry. This protection prevents competitors from trying
to replicate our products in order to carve away at our anticipated market share. Therefore, backing our text payment and lead
generation products with patents strengthens the viability of such products by limiting direct competition.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our patent protected
text payment system&rsquo;s anticipated capabilities also set us apart. By creating a product that permits mobile payments without
the need to for a data plan, internet or an application, we will have the unique ability to target unbanked and underbanked individuals
primarily in developing or emerging markets. Integrating consumers that are not traditionally included in the payment space will
allow us to have a larger potential market than many of our competitors.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The features and
capabilities of products we intend to bring to market allow for agile transaction processing which supports API-driven, multi-channel
and secure products. The ability for such products to be embedded into other technologies while supporting multi-currency transactions
set our anticipated suite of products apart from established fintech companies.&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Growth Strategy</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We intend to grow
through levering our existing IP, partnering with strategic partners that have unique technology that complements the core businesses
of the company as well as through selective acquisition. From traditional merchant accounts to customizable inbound and outbound
payment solutions, we intend to modernize and enhance the payment processing and digital banking capabilities for businesses throughout
the world. Our business objective is to generate revenues based on licensing fees, synergistic product lines, processing fees,
SaaS distribution and continual advancement of our IP portfolio.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our target market
is SMBs seeking to broaden their distribution through the addition of digital payment channels, and SMBs looking
to create competitive advantage by advancing their integration and streamlining of their payment processing services and financial
institutions looking to enhance their customer&rsquo;s user experience through the development of innovative and user centric
multi-channel, multi-currency, digital financial products. We intend to utilize a white-label SaaS delivery model, which will
allow for service fees, revenue sharing and back-end processing fees. Further, by offering SMBs a full array of lead generation
services, merchant services processing and digital banking technologies, we will allow them to better interact with their customers
and provide additional, dynamic means of processing both inbound and outbound payments. SMBs generally lack the resources of large
enterprises to invest heavily in technology. As a result, they are more dependent on service providers, such as us, to handle
critical functions including payment acceptance and other support services and are likely to be early adopters of new services
that will further increase their efficiency and drive growth.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">Businesses&rsquo;
financial technology needs are increasingly complex. As electronic and mobile commerce continues to grow, businesses have no alternative
but to use technology to better reach their customers. We believe by delivering novel, adaptive products meet their financial
services needs it will result in rapid market penetration for our anticipated products launches.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While leveraging
new technology is vital to our growth plan, it is equally important that technology is relevant and seamlessly fits into and benefits
our end-user&rsquo;s everyday life. Consumers are sometimes reluctant to alter their typical routines, especially when it relates
to financial services. The anticipated launch of our text payment system and broader digital banking and payments solutions will
meet both these needs. We will offer payment acceptance technologies that do not rely on legacy payment rails while allowing the
end-user to transact frictionless and secure payments with the comfort of text messaging. Once properly developed and rolled out,
we anticipate rapid adoption.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
seek to grow our business by pursuing the following strategies:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><P STYLE="margin: 0pt 0; font: 10pt/107% Times New Roman, Times, Serif">Increasing
                                         our customer base by offering unique and compelling, patent protected technology solutions;</P></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Driving
                                         growth in our merchant services business through new and flexible technologies, including
                                         our secure text payment system, that will enable our customers to adapt to a rapidly
                                         changing marketplace;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rolling-out
                                         our <FONT STYLE="letter-spacing: -0.05pt">API-driven, account-based, issuer processing
                                         solution for card, digital token, and payment transfer transactions that will enable
                                         us to target multi-currency and multi-channel digital banking and embedded B2B payment
                                         opportunities</FONT>;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Engaging
                                         end-users via lead generation and text marketing services to enable businesses to better
                                         communicate with their customers and integrate our full suite of products;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Maintaining
                                         technological leadership by continuing to innovate and improve our technology;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuing
                                         strategic acquisitions or partnerships to complement and bolster our suite of fintech
                                         products;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Creating
                                         cross-selling synergies through white labeling or SaaS distribution enabling us to provide
                                         a holistic suite of products and services to merchants, banking institutions and SMEs;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Utilizing
                                         a scalable business model to eliminate certain barriers to rapid growth; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expanding
                                         into the telehealth sector by offering advanced remote patient monitoring technologies.
                                         </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Vital to our future
success is the market penetration of our current and future products. Our market penetration strategy includes four elements:
(1) royalty-free licenses; (2) engaging close industry contacts; (3) utilizing potential market share shifting IP; and (4) illustrating
the need for our fintech products amongst our target industry segments.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the outset,
to gain a foothold, we plan to offer royalty-free licenses for our text messaging and complimentary payment solutions in exchange
for the processing the related payments. By incentivizing potential clients with free access to advanced, patented technology,
we will give clients the ability to bolster and enhance their fintech capabilities, while creating revenue streams for our full
suite of products.&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">With
years of fintech experience, management believes we can leverage our industry contacts and past clients in order to gain valuable
contracts with businesses. Engaging individuals with the ability to integrate our products may prove invaluable. Further, through
our channel partnerships, we have an expansive network of potential clients to integrate our technology into their payment processing
needs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management
believes there are substantial opportunities in emerging and developing markets for our anticipated products. Our mobile payment
and digital banking solutions offer innovative avenues to unbanked and underbanked communities to transact and provide remittances.
Further, since internet connectivity is not required for our text payment solution, individuals with limited internet access will
still be able transact. These two factors have the ability to open our products to markets with immense growth potential.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Companies
are regularly attempting to identify ways to stay in contact with their customers and create new payment channels. Our products
do precisely this. When customers sign up for our secure text payment system, clients will have the ability to integrate a text
messaging waiver into the registration process. This allows for clients to have fresh, opted-in contact information which can
be paired with our text messaging services for notification, response, authentication, marketing, advertising, information queries
and reports. It is our intent to market these identifiable benefits to companies in order to illustrate the advantages of partnering
with us. Specific industries that could utilize our secure text payment system are pharmacies, collection agencies, charitable
and religious organizations, utility companies, property management companies and any business that relies upon recurring business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our partnership
with NEC Payments&rsquo; internationally experienced and proven team of subject matter experts will enable our management to focus
resources on delivering growth using the strategies described above with full confidence that the business is being powered by
innovative technology IP running on robust, secure and scalable highly-available cloud infrastructure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Management
believes our partnership with Silver Alert Services, LLC is the initial foothold for our expansion in the telehealth sector. Our
strategic partnership providing financial services in support of their remote patient monitoring devices has the opportunity
to create substantial revenue. However, with the emergence of new telehealth platforms and the rapid shift towards e-visits,
many of which require private payer model, we believe our payment acceptance technology, specifically our embedded
capabilities will have widespread application in the sector.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Risks
Associated with our Business</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-indent: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
investment in our common stock involves a high degree of risk. You should carefully consider the risks summarized below. These
risks are discussed more fully in the section titled &ldquo;Risk Factors&rdquo; following this prospectus summary. These risks
include, but are not limited to, the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="width: 95%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt; line-height: 106%">uncertainty
    </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">associated <FONT STYLE="letter-spacing: -0.05pt">with
    </FONT>anticipated <FONT STYLE="letter-spacing: -0.05pt">launch</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our</FONT>
    text payment platform and other potential advanced payment solutions we intend to launch in the future;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt; line-height: 106%">substantial
    investment and costs associated with new potential revenue streams and their corresponding contractual obligations; </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">dependence on third-party
    <FONT STYLE="letter-spacing: -0.05pt">channel</FONT> and <FONT STYLE="letter-spacing: -0.05pt">referral</FONT> partners, <FONT STYLE="letter-spacing: -0.05pt">who
    comprise</FONT> a <FONT STYLE="letter-spacing: -0.05pt">significant</FONT> portion of <FONT STYLE="letter-spacing: -0.05pt">our
    sales force, for</FONT> gaining new clients;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD><P STYLE="font: 10pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
        <FONT STYLE="letter-spacing: -0.05pt">slowdown</FONT> or reduction <FONT STYLE="letter-spacing: 0.05pt">in</FONT> our
        <FONT STYLE="letter-spacing: -0.05pt">sales</FONT> in <FONT STYLE="letter-spacing: -0.05pt">due</FONT> to a reduction
        <FONT STYLE="letter-spacing: 0.05pt">in</FONT> <FONT STYLE="letter-spacing: -0.05pt">end user</FONT> demand, unanticipated
        <FONT STYLE="letter-spacing: -0.05pt">competition,</FONT> regulatory issues, or <FONT STYLE="letter-spacing: -0.05pt">other
        unexpected circumstances;</FONT></FONT></P>
        <P STYLE="font: 10pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">&nbsp;</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">uncertainty
    regarding our ability to achieve profitability and positive cash flow through the commercialization of the products we offer
    or intend to offer in the future; </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">dependence
    on third-party payment processors to facilitate our merchant services capabilities;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">delay
    in or failure to obtain regulatory approval of our text payment system or any future products in additional countries;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">our
    ability to operate our business while timely making payments pursuant to our loan agreements;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">our
    need to raise additional financing to fund daily operations and successfully grow our Company;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">our
    ability to retain and recruit appropriate employees, in particular a productive sales force;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">current
    and future laws and regulations;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; width: 95%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">general
    economic uncertainty associated with the COVID-19 pandemic;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">the
    adverse effects of COVID-19, and its unpredictable duration, in regions where we have customers, employees and distributors;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">the
    adverse effects of COVID-19 on processing volumes resulting from (a) limitations on in-person access to our merchants&rsquo;
    businesses or (b) the unwillingness of customers to visit our merchants&rsquo; businesses;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">the
    possibility that the economic impact of COVID-19 will lead to changes in how consumers make purchases and we are unable to
    monetize such changes;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">the
    possibility that the economic impact of COVID-19, and its associated high unemployment rate, will lead to less consumer spending
    thus resulting in loss of revenues;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><P STYLE="font: 10pt/106% Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></P></TD>
    <TD><P STYLE="font: 10pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
        possibility that the economic impact of COVID-19, will result in our merchants&rsquo; businesses failing to reopen once
        restrictions are further eased; and</FONT></P>
        <P STYLE="font: 10pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
        other factors described in &ldquo;Risk Factors.&rdquo;</FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0pt 0 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Reverse
Stock Split</B></FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0pt 0 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0pt 0 0; text-indent: 24pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
will effect a reverse stock split of our common stock at a ratio of 1-for-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; following the
effectiveness of the registration statement of which this prospectus forms a part and prior to the closing of this offering. No
fractional shares will be issued in connection with the reverse stock split and all such fractional interests will be rounded
up to the nearest whole number of shares of common stock. The conversion or exercise prices of our issued and outstanding convertible
securities, stock options and warrants will be adjusted accordingly. All information presented in this prospectus other than in
our consolidated financial statements and the notes thereto assumes a 1-for- reverse stock split of our outstanding shares of
common stock, and unless otherwise indicated, all such amounts and corresponding conversion price or exercise price data set forth
in this prospectus have been adjusted to give effect to such assumed reverse stock split.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Corporate
Information</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
were originally formed as a Florida corporation on July 02, 1998 as Health Express USA, Inc. On August 29, 2005 we changed our
name to CSI Business, Inc and reincorporated as a Nevada corporation. On September 15, 2006 we changed our name to Natural Nutrition
Inc. On October 27, 2009 we changed our name to AppTech Corp. We filed Articles of Domestication to change the domicile of the
Company from Nevada to Wyoming on July 18, 2011. Our principal executive offices are located at 5876 Owens Avenue, Suite 100,
Carlsbad, California 92008. Our phone number is (760) 707-5959. Our website address is www.apptechcorp.com. We do not incorporate
the information on or accessible through our website to be part of this prospectus. We have included our website address in this
prospectus solely as an inactive textual reference.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Implications
of Being a Smaller Reporting Company</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">We
are a &ldquo;smaller reporting company&rdquo; as defined in the Exchange Act. We may take advantage of certain of the scaled disclosures
available to smaller reporting companies until the fiscal year following the determination that our voting and&nbsp;non-voting&nbsp;common
stock held by&nbsp;non-affiliates&nbsp;is more than $250&nbsp;million measured on the last business day of our second fiscal quarter,
or our annual revenues are less than $100&nbsp;million during the most recently completed fiscal year and our voting and&nbsp;non-voting&nbsp;common
stock held by&nbsp;non-affiliates&nbsp;is less than $700&nbsp;million measured on the last business day of our second fiscal quarter.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">THE
OFFERING</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 0pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 50%; padding-top: 6pt; padding-bottom: 6pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common
    stock offered by us:</FONT></TD>
    <TD STYLE="width: 50%; padding-top: 6pt; padding-bottom: 6pt; font: bold 10pt Times New Roman, Times, Serif; text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Shares</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-top: 6pt; padding-bottom: 6pt; text-align: justify"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common
                                         stock to be outstanding immediately <B>this offering:</B></FONT></P></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-top: 6pt; padding-bottom: 6pt; text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Shares
    (&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares if the underwriters exercise their option to purchase additional shares in full)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-top: 6pt; padding-bottom: 6pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Underwriters&rsquo;
    option to purchase additional shares from us:</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-top: 6pt; padding-bottom: 6pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">We
    have granted the underwriters a [45-day] option to purchase up to an aggregate of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;additional
    shares of common stock from us at the public offering price, less underwriting discounts and commissions, on the same terms
    as set forth in this prospectus.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-top: 6pt; padding-bottom: 6pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use
    of proceeds:</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-top: 6pt; padding-bottom: 6pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">We
    estimate that we will receive net proceeds from this offering of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
    or approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million if the underwriters exercise their option to purchase
    additional shares in full, assuming an initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share,
    the most recent reported closing price of our common stock, and after deducting estimated underwriting discounts and commissions
    and estimated offering expenses payable by us. We currently intend to use the net proceeds from this offering, together with
    our existing cash, to fund the research and development of our technologies, expand our marketing efforts and for general
    working capital purposes. See &ldquo;Use of Proceeds&rdquo; below.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-top: 6pt; padding-bottom: 6pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dividend
    policy:</FONT></TD>
    <TD STYLE="padding-top: 6pt; padding-bottom: 6pt; font-size: 10pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
    do not currently intend to pay dividends on our common stock.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-top: 6pt; padding-bottom: 6pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk
    factors:</FONT></TD>
    <TD STYLE="padding-top: 6pt; padding-bottom: 6pt; font-size: 10pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
    investment in our common stock involves a high degree of risk. You should read this prospectus carefully, including the section
    entitled &ldquo;Risk Factors&rdquo; and the consolidated financial statements and the related notes to those statements included
    in this prospectus, before investing in our common stock before deciding to invest in shares of our common stock.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-top: 6pt; padding-bottom: 6pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Proposed
    Nasdaq Capital Market Symbol<FONT STYLE="font-weight: normal">:</FONT></FONT></TD>
    <TD STYLE="padding-top: 6pt; padding-bottom: 6pt; font-size: 10pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&ldquo;APCX&rdquo;. Our
    common stock is presently quoted on the over the counter markets under the symbol &ldquo;APCX&rdquo;. We intend to apply to
    list our common stock on The Nasdaq Capital Market under the symbol &ldquo;APCX&rdquo;. [We will not proceed with this
    offering in the event the common stock is not approved for listing on Nasdaq.]</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
giving effect to the planned reverse stock split of our common stock at a ratio of 1-for<FONT STYLE="background-color: White">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
, t</FONT>he number of shares of common stock to be outstanding after this offering is based on shares of common stock outstanding
at &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2021, and excludes
the following:</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                         exercise of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outstanding stock options under our stock option plan at
                                         a weighted average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                         per share; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">
                                         shares available for grant under our stock option plan.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless
otherwise indicated, all information in this prospectus reflects or assumes:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">no
                                         exercise by the underwriters of their option to purchase up to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                         additional shares of common stock in this offering.</FONT></TD></TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SUMMARY
FINANCIAL DATA</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations, our consolidated financial statements and notes thereto,
and other financial information are included elsewhere in this prospectus. The statement of operations data for the years ended
December 31, 2018 and 2019 have been derived from our audited consolidated financial statements included elsewhere in this prospectus.
The statement of operations data for the nine months ended September 30, 2019 and 2020 and the balance sheet data as of September
30, 2020 have been derived from our unaudited consolidated financial statements included elsewhere in this prospectus. In the
opinion of management, the unaudited financial statements include all adjustments, consisting of only normal and recurring adjustments,
necessary for a fair presentation of such financial data. Our historical results are not necessarily indicative of our results
in any future period and results from our interim period may not necessarily be indicative of the results of the entire year.
Pro forma share and per share amounts presented herein reflect the implementation of the 1-for-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
reverse stock split as if it had occurred at the beginning of the earliest period presented.</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Consolidated
Statements of Operations &ndash; Years Ended December 31, 2019 and 2018</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="text-align: center"><B>December 31,</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="text-align: center"><B>December 31,</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><B>2019</B></TD><TD STYLE="padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><B>2018</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; text-indent: -7.5pt; padding-left: 7.75pt">Revenues</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">256,138</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">253,785</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 7.75pt">Cost of revenues</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">101,638</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">108,389</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">154,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">145,396</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">General and administrative, including stock based compensation of $91,414 and $1,547,388, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,020,869</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,912,218</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 20.25pt">Research and development</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">82,057</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">279,685</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 7.75pt">Total operating expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,102,926</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,191,903</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(948,426</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,046,507</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Other income (expenses)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(288,784</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(464,616</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 20.25pt">Other expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(106,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 30.25pt">Total other income (expenses)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(394,784</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(464,616</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Loss before provision for income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,343,210</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,511,123</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 7.75pt">Provision for income taxes</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -7.5pt; padding-left: 7.75pt">Net loss</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,343,210</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(2,511,123</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -7.5pt; padding-left: 7.75pt">Basic and diluted net loss per common share</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.02</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.03</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -7.5pt; padding-left: 7.75pt">Weighted-average number of shares used basic and diluted per share amounts</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,473,862</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">87,346,661</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Consolidated
Balance Sheets &ndash; As of September 30, 2020 and December 31, 2019</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B></B>&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><B>September 30, 2020</B></TD><TD STYLE="padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><B>December 31, 2019</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">ASSETS</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 45%; padding-left: 20pt">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">46,316</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">24,159</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,227</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29,836</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Deposit escrow</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Security deposit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,948</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 30pt">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84,543</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84,943</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Right of use asset</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">265,120</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Security deposit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">7,536</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 7.5pt">TOTAL ASSETS</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">357,199</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,943</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 7.5pt">LIABILITIES AND STOCKHOLDERS&rsquo; DEFICIT</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,862,643</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,707,878</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,552,712</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,334,480</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Right of use liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,035</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Stock repurchase liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">430,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">430,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Loans payable related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">51,401</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">93,401</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Convertible notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">620,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">620,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Convertible notes payable related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">372,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">372,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,172,281</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,104,081</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Notes payable related parties</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">708,493</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">708,493</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 30pt">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,819,565</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,370,333</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 30pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Long-term liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">160,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Right of use liability</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">238,174</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 30pt">Total long-term liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">238,174</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">160,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 30pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 7.5pt">TOTAL LIABILITIES</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,057,739</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">7,530,333</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Commitments and contingencies (Note 8)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Stockholders&rsquo; Deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Series A preferred stock; $0.001 par value; 100,000 shares authorized; 14 shares issued and outstanding at September 30, 2020 and December 31, 2019</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Common stock, $0.001 par value; 1,000,000,000 shares authorized; 87,821,825 and 84,153,825 and outstanding at September 30, 2020 and December 31, 2019, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">87,822</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84,154</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,870,457</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,230,869</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 7.5pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(43,658,819</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(40,760,413</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 30pt">Total stockholders&rsquo; deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(7,700,540</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(7,445,390</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 7.5pt">TOTAL LIABILITIES AND STOCKHOLDERS&rsquo; DEFICIT</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">357,199</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,943</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Consolidated
Statements of Operations &ndash; Nine Months Ended September 30, 2020 and 2019</B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid"><B>For the Nine Months Ended September 30,</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><B>2020</B></TD><TD STYLE="padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><B>2019</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; padding-left: 7.5pt">Revenues</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">241,367</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">190,411</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 7.5pt">Cost of revenues</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">103,721</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">75,099</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">137,646</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">115,312</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">General and administrative, including stock based compensation of $1,066,386, $46,000, $2,357,125 and $89,134, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,781,912</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">743,210</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Research and development</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">49,250</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">62,350</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 30pt">Total operating expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,831,162</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">805,560</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,693,516</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(690,248</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Other income (expenses)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 20pt">Forgiveness of Debt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Interest expense</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(213,890</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(217,722</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 30pt">Total other expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(204,890</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(217,722</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Loss before provision for income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,898,406</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(907,970</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 7.5pt">Provision for income taxes</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 7.5pt">Net loss</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(2,898,406</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(907,970</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 7.5pt">Basic and diluted net loss per common share</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.03</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.01</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 7.5pt">Weighted-average number of shares used basic and diluted per share amounts</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">85,941,115</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,482,903</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="risk"></A>RISK
FACTORS</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>An
investment in our common stock is speculative and involves a high degree of risk including the risk of a loss of your entire investment.
You should carefully consider the following risk factors These risk factors contain, in addition to historical information, forward
looking statements that involve risks and uncertainties. Our actual results could differ significantly from the results discussed
in the forward-looking statements. The occurrence of any of the adverse developments described in the following risk factors and
in the documents incorporated herein by reference could materially and adversely harm our business, financial condition, results
of operations or prospects. In such event, the value of our common stock could decline, and you could lose all or a substantial
portion of the money that you pay for our common stock. In addition, the risks and uncertainties discussed below are not the only
ones we face. Our business, financial condition, results of operations or prospects could also be harmed by risks and uncertainties
not currently known to us or that we currently do not believe are material, and these risks and uncertainties could result in
a complete loss of your investment. In assessing the risks and uncertainties described below, you should also refer to the other
information contained in this prospectus (as supplemented or amended).</I></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Risks
Related to Our Company</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
payment processing industry is highly competitive. Such competition could adversely affect the fees we receive, and as a result,
our margins, business, financial condition and results of operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
market for payment processing services is highly competitive and has relatively low barriers to entry. Other providers of payment
processing services have established a sizable market share in the merchant acquiring sector and service more clients than we
do. Our growth will depend, in part, on a combination of the continued growth of the electronic payment market and our ability
to increase our market share through technological advancement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
payment and software solutions compete against many forms of financial services and payment systems, including electronic, mobile
and integrated payment platforms as well as cash and checks. Our competitors include traditional merchant acquirers such as financial
institutions, affiliates of financial institutions and well-established payment processing companies that target our existing
clients and potential clients directly, including Bank of America Merchant Services, Chase Paymentech, Elavon, Inc. (a subsidiary
of U.S. Bancorp), Fiserv, Inc., Global Payments, Inc. and Fidelity National Information. In addition, we compete with vendors
that are specifically targeting ISVs and VARs as distribution partners for their merchant acquiring services, such as Stripe,
Inc., Square, Inc., Toast, Inc., PayPal Holdings, Inc., Braintree (owned by PayPal), Adyen, Ltd., and OpenEdge (a division of
Global Payments).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Many
of our competitors have substantially greater financial, technological, management and marketing resources than we have. Accordingly,
if these competitors specifically target our business model, they may be able to offer more attractive fees or payment terms and
advances to our clients and more attractive compensation to our distribution partners. They also may be able to offer and provide
products and services that we do not offer. There are also a large number of small providers of processing services that provide
various ranges of services to our clients and our potential clients. This competition may effectively limit the prices we can
charge and requires us to control costs aggressively in order to maintain acceptable profit margins. Further, in regard to certain
products, if the use of payment cards other than Visa or Mastercard grows, or if there is increased use of certain debit cards,
our average profit per transaction could be reduced. Competition could also result in a loss of existing distribution partners
and clients and greater difficulty attracting new distribution partners and clients. One or more of these factors could have a
material adverse effect on our business, financial condition and results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, we are also subject to risks as a result of changes in business habits of our vendors and customers as they adjust to
the competitive marketplace. For example, consumer behavior may change regarding the use of payment card transactions, including
the relative increased use of cash, crypto-currencies, other emerging or alternative payment methods and payment card systems
that we or our processing partners do not adequately support or that do not provide adequate commissions to parties like us. Any
failure to timely integrate emerging payment methods into our software, to anticipate consumer behavior changes or to contract
with processing partners that support such emerging payment technologies could cause us to lose traction among our customers or
referral sources, including industry associations, resulting in a corresponding loss of revenue, if those methods become popular
among end-users of their services.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
independent registered public accounting firm&rsquo;s report contains an explanatory paragraph that expresses substantial doubt
about our ability to continue as a &ldquo;going concern.&rdquo; </I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
experienced net losses from operations in the nine-month period ended September 30, 2020 and the fiscal year ended December 31,
2019, and we may continue to incur net losses from operations in the future. The report of our independent registered public accounting
firm on our financial statements as of and for the year ended December 31, 2019 included an explanatory paragraph indicating that
there is substantial doubt about our ability to continue as a going concern. If we are unable to raise sufficient capital in this
offering or otherwise as and when needed, our business, financial condition and results of operations will be materially and adversely
affected, and we will need to significantly modify our operational plans to continue as a going concern. If we are unable to continue
as a going concern, we may have to liquidate our assets, and the values we receive for our assets in liquidation or dissolution
could be significantly lower than the values reflected in our financial statements. The inclusion of a going concern explanatory
paragraph by our independent registered public accounting firm, our lack of cash resources and our potential inability to continue
as a going concern may materially adversely affect our share price and our ability to raise new capital, enter into critical contractual
relations with third parties and otherwise execute our development strategy.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>If
we are unable to obtain additional funding when needed, our business operations will be harmed, and if we do obtain additional
financing, our then-existing shareholders may suffer substantial dilution.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0pt 0 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
we take steps in the commercialization and marketing of our technologies, or respond to potential opportunities and/or adverse
events, our working capital needs may change. We anticipate that if our cash and cash equivalents are insufficient to satisfy
our liquidity requirements, we will require additional funding to sustain our ongoing operations and to continue our research
and development activities. Specifically, we have contractual obligations under a license and service agreement with a partner
that requires payment of fees which exceeds our current liquidity. We do not have any contracts or commitments for additional
funding, and there can be no assurance that financing will be available in amounts or on terms acceptable to us, if at all, if
needed. The inability to obtain additional capital will restrict our ability to grow and may reduce our ability to conduct business
operations. If we are unable to obtain additional financing to finance a revised growth plan, we will likely be required to curtail
such plans or cease our business operations. Any additional equity financing may involve substantial dilution to our then existing
shareholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
loss of key personnel or the inability of replacements to quickly and successfully perform in their new roles could adversely
affect our business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
depend on the leadership and experience of our relatively small number of key executive management personnel, particularly our
Chairman of the Board, Chief Executive Officer and Chief Investment Officer, Luke D&rsquo;Angelo, our President and Chief Operating
Officer, Virgilio Llapitan, our Chief Financial Officer, Gary Wachs and our VP of Corporate Development and Corporate Counsel
Jeffrey Moriarty. The loss of the services of any of these key executives or any of our executive management members could have
a material adverse effect on our business and prospects, as we may not be able to find suitable individuals to replace such personnel
on a timely basis or without incurring increased costs, or at all. Furthermore, if we lose or terminate the services of one or
more of our key employees or if one or more of our current or former executives or key employees joins a competitor or otherwise
competes with us, it could impair our business and our ability to successfully implement our business plan. Additionally, if we
are unable to hire qualified replacements for our executive and other key positions in a timely fashion, our ability to execute
our business plan would be harmed. Even if we can quickly hire qualified replacements, we would expect to experience operational
disruptions and inefficiencies during any transition. We believe that our future success will depend on our continued ability
to attract and retain highly skilled and qualified personnel. There is a high level of competition for experienced, successful
personnel in our industry. Our inability to meet our executive staffing requirements in the future could impair our growth and
harm our business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
financial statements may be materially affected if our estimates prove to be inaccurate as a result of our limited experience
in making critical accounting estimates.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Financial
statements prepared in accordance with GAAP require the use of estimates, judgments, and assumptions that affect the reported
amounts. Actual results may differ materially from these estimates under different assumptions or conditions. These estimates,
judgments, and assumptions are inherently uncertain, and, if they prove to be wrong, then we face the risk that charges to income
will be required. In addition, because we have limited experience in making these estimates, judgments, and assumptions, the risk
of future charges to income may be greater than if we had more experience in these areas. Any such charges could significantly
harm our business, financial condition, results of operations, and the price of our securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>An
inability to develop and introduce products in a timely and cost-effective manner may damage our business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
sales and profitability depend on our ability to bring products to market and meet customer demands before they begin to lose
interest in a given product. There is no guarantee that we will be able to develop and source our products in a timely manner
and on a cost-effective basis to meet constantly changing consumer demands. Unforeseen delays or difficulties in the development
process, significant increases in the planned cost of development, and manufacturing delays or changes in anticipated consumer
demand for our products and new brands may cause the introduction date for products to be later than anticipated. They may also
reduce or eliminate the profitability of such products or, in some situations, may cause a product or new brand introduction to
be discontinued.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B><I>Our
operating results may fluctuate significantly as a result of a variety of factors, many of which are outside of our control, which
could cause fluctuations in the price of our securities.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are subject to the following factors that may negatively affect our operating results:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 94%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the announcement or introduction
    of new products by our competitors;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 94%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to upgrade and
    develop our systems and infrastructure to accommodate growth;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 94%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
ability to attract and retain key personnel in a timely and cost-effective manner;&nbsp;</FONT></P></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 94%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">technical difficulties;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 94%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the amount and timing of
    operating costs and capital expenditures relating to the expansion of our business, operations, and infrastructure;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 94%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to identify and
    enter into relationships with appropriate and qualified third-party providers for necessary development and other relevant
    services;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 94%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">regulation by federal, state,
    or local governments;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 94%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">general economic conditions,
    as well as economic conditions specific to payment processing, banking and consumer discretionary spending; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 94%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Various risks related to
    health epidemics, pandemics and similar outbreaks, such as the coronavirus pandemic,
    which may have material adverse effects on our business, financial position, results of operations and/or cash flows.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a result of our limited historical revenue and the nature of the markets in which we compete, it is difficult for us to forecast
our revenues or earnings accurately. As a strategic response to changes in the competitive environment, we may from time to time
make certain decisions concerning expenditures, pricing, service, or marketing that could have a material and adverse effect on
our business, results of operations, and financial condition. Due to the foregoing factors, our quarterly revenues and operating
results are difficult to forecast.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
face risks related to Coronavirus (COVID-19) which could significantly disrupt our research and development, operations, sales,
and financial results.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
business could be further impacted by the effects of the COVID-19. In addition to global macroeconomic effects, the COVID-19 outbreak
and any other related adverse public health developments has caused disruption to our operations and sales activities. Our third-party
vendors, third-party distributors, and our customers have been and will be disrupted by worker absenteeism, quarantines and restrictions
on employees&rsquo; ability to work, office and factory closures, disruptions to ports and other shipping infrastructure, border
closures, or other travel or health-related restrictions. Depending on the magnitude of such effects on our activities or the
operations of our third-party vendors and third-party distributors, the supply of our products will be delayed, which could adversely
affect our business, operations and customer relationships. In addition, COVID-19 or other disease outbreak will in the short-run
and may over the longer term adversely affect the economies and financial markets of many countries, resulting in an economic
downturn that will affect demand for our products and services and impact our operating results. There can be no assurance that
any decrease in sales resulting from COVID-19 will be offset by increased sales in subsequent periods. Although the magnitude
of the impact of the COVID-19 outbreak on our business and operations remains uncertain, the continued spread of COVID-19 or the
occurrence of other epidemics and the imposition of related public health measures and travel and business restrictions will adversely
impact our business, financial condition, operating results and cash flows. In addition, we have experienced and will experience
disruptions to our business operations resulting from quarantines, self-isolations, or other movement and restrictions on the
ability of our employees to perform their jobs that may impact our ability to develop and design our products and services in
a timely manner or meet required milestones or customer commitments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>To
acquire and retain clients, we depend in part on channel partners that generally do not serve us exclusively, may not aggressively
market our products and services, are subject to attrition and are not under our control. </I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0.9pt; margin-right: 0.25in; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
intend to rely on the efforts of our channel partners to market our products and services, such as our merchant services, secure
text payments, digital banking and lead generation, to existing clients and potential clients. Generally, our agreements with
channel partners are not exclusive and these partners retain the right to refer potential clients to other merchant acquirers.
Gaining and maintaining loyalty or exclusivity may require financial concessions to maintain current channel partners or to attract
potential channel partners from our competitors who may be offering significantly more enticing pricing terms, such as increased
signing bonuses or residuals payable to our referral partners, which could have a negative impact on our results of operations.
If these channel partners switch to another merchant acquirer, focus more heavily on promoting the products and services of one
or more other merchant acquirers, cease operations or become insolvent, we may no longer receive new referrals from them or may
receive fewer new referrals from them, and we also risk losing existing clients with whom the channel partner has a relationship.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0.9pt; margin-right: 0.25in; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
some of our channel partners are subject to the requirements imposed by our bank sponsors, which may result in fines to them for
non-compliance and may, in some cases, result in these entities ceasing to market our products and services. If we are unable
to maintain our existing base of channel partners or develop relationships with new channel partners, our business, financial
condition and results of operations would be materially adversely affected. Our channel partners are independent businesses and
we have no control over their day-to-day business activities, including their client marketing and solicitation practices.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0.9pt; margin-right: 0.25in; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further,
we may be named in legal proceedings in connection with the actions of our channel partners where it is alleged that our channel
partners have intentionally or negligently misrepresented pricing or other contractual terms to clients or potential clients related
to our processing solutions or related products. While in some cases we may have indemnification rights against our channel partners
for these activities, there is no guarantee that we will be able to successfully enforce those indemnification rights or that
our channel partners are adequately capitalized in a manner necessary to satisfy their indemnification obligations to us. If one
or more judgments or settlements in any litigation or other investigation, plus related defense and investigation costs, significantly
exceed our insurance coverage and we are unable to enforce our indemnification rights against a channel partner or partners, our
business, financial condition and results of operations could materially suffer.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Unauthorized
disclosure, destruction or modification of data or disruption of our services could expose us to liability, protracted and costly
litigation and damage our reputation.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
and other third parties collect, process, and transmit sensitive data, such as names, addresses, social security numbers, credit
or debit card numbers and expiration dates, drivers&rsquo; license numbers and bank account numbers, and we have ultimate liability
to the payment networks and member financial institutions that register us with the payment networks for our failure, or the failure
of certain channel partners and third parties with whom we contract, to protect this data in accordance with payment network requirements.
Some of our merchants and channel partners may store such data. The loss, destruction or unauthorized modification of client or
cardholder data could result in significant fines, sanctions and proceedings or actions against us by the payment networks, governmental
bodies, consumers or others, which could have a material adverse effect on our business, financial condition and results of operations.
Any such proceeding or action could damage our reputation, force us to incur significant expenses in defense of these proceedings,
distract our management, increase our costs of doing business and may result in the imposition of monetary liability.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
could be subject to breaches of security by hackers. Although we proactively employ multiple measures to defend our systems against
intrusions and attacks and to protect the data we collect, our measures may not prevent unauthorized access or use of sensitive
data. A breach of our system or a third-party system upon which we rely may subject us to material losses or liability, including
payment network fines, assessments and claims for unauthorized purchases with misappropriated credit, debit or card information,
impersonation or other similar fraud claims. Although we have not to date incurred material losses or liabilities as a result
of breaches, a future breach of our system may subject us to material losses or liability, including payment of fines and claims
for unauthorized purchases with misappropriated credit or debit card or bank account information or other similar fraud claims.
A misuse of such data or a cybersecurity breach could harm our reputation and deter clients from using electronic payments generally
and our services specifically, increase our operating expenses in order to correct the breaches or failures, expose us to uninsured
liability, increase our risk of regulatory scrutiny, subject us to lawsuits and/or result in the imposition of material penalties
and fines under applicable laws or by our clients.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>If
we or our bank sponsors fail to adhere to the standards of Visa and MasterCard, we could be fined, suspended, or our registrations
with these organizations could be terminated and we could be required to stop providing payment processing services for Visa and
MasterCard.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are not a bank and are unable to belong to and attain direct membership to Visa and MasterCard. Visa and MasterCard operating
regulations require us to be sponsored by a bank in order to process bankcard transactions. We are currently registered with Visa
and MasterCard through the sponsorship from banks that are members of the card brands. If we or our bank sponsors fail to comply
with the applicable requirements of the Visa or MasterCard payment card brands, Visa or MasterCard could suspend or terminate
our registration. The termination of our registration or any changes in the Visa or MasterCard rules that would impair our registration
could prevent us from providing transactional processing services. If our sponsorships are terminated and we are not able to secure
or successfully migrate merchant portfolios to new bank sponsors, we will not be able to conduct our business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0.5in; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
rely on bank sponsors, which have substantial discretion with respect to certain elements of our business practices.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Some
agreements with our bank sponsors give them substantial discretion in approving certain aspects of our business practices, including
our solicitation, application and qualification procedures for clients and the terms of our agreements with clients. Our bank
sponsors&rsquo; discretionary actions under these agreements could have a material adverse effect on our business, financial condition,
and results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
may face significant chargeback liability if our merchant clients refuse or cannot reimburse chargebacks resolved in favor of
their customers and may not accurately anticipate these liabilities.</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0.5in 0 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have potential liability for chargebacks associated with our clients&rsquo; processing transactions. In most circumstances, if
a billing dispute between a client and a cardholder is not ultimately resolved in favor of our client, the disputed transaction
is &ldquo;charged back&rdquo; to the client&rsquo;s bank and credited to the account of the cardholder. Anytime our client is
unable to satisfy a chargeback, we are responsible for that chargeback.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0.5in; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are potentially liable for losses caused by fraudulent credit card transactions. Card fraud occurs when a client&rsquo;s customer
uses a stolen card (or a stolen card number in a card-not-present transaction) to purchase merchandise or services. In a traditional
card-present transaction, if the client swipes the card, receives authorization for the transaction from the card issuing bank
and verifies the signature on the back of the card against the paper receipt signed by the customer, the card issuing bank remains
liable for any loss. In a fraudulent card-not-present transaction, even if the client receives authorization for the transaction,
the client is liable for any loss arising from the transaction. Many of the SMBs clients that we serve are small and transact
a substantial percentage of their sales over the Internet. Because their sales are card-not-present transactions, these clients
are more vulnerable to customer fraud than larger clients</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Business
fraud occurs when a business or organization, rather than a cardholder, knowingly uses a stolen or counterfeit card or card number
to record a false sales transaction, or intentionally fails to deliver the merchandise or services sold in an otherwise valid
transaction. Business fraud also occurs when employees of businesses change the business demand deposit accounts to their personal
bank account numbers, so that payments are improperly credited to the employee&rsquo;s personal account. Incidents of fraud could
increase in the future. Failure to effectively manage risk and prevent fraud could increase our chargeback liability and other
liability.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.05in 0 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.05in 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
periodically experience increases in interchange and other related costs, and if we cannot pass these increases along to our merchants,
our profit margins will decline.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0.9pt; margin-right: 0.25in; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
pay interchange fees or assessments to issuing banks through the card associations for each transaction that is processed using
their credit and debit cards. From time to time, the card associations increase the interchange fees that they charge processors
and the sponsoring banks. At their sole discretion, our sponsoring banks have the right to pass any increases in interchange fees
on to us. In addition, our sponsoring banks may seek to increase their sponsorship fees charged to us, all of which are based
upon the dollar amount of the payment transactions we process. If we are not able to pass these fee increases along to clients
through corresponding increases in our processing fees, our profit margins will be reduced.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
system and our third-party providers&rsquo; systems may fail which could adversely affect our business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
systems and operations or those of our third-party technology vendors could be exposed to damage or interruption from, among other
things, fire, natural disaster, power loss, telecommunications failure, unauthorized entry, computer viruses, denial-of-service
attacks, acts of terrorism, human error, vandalism or sabotage, financial insolvency and similar events. Defects in our systems
or those of third parties, errors or delays in the processing of payment transactions, telecommunications failures or other difficulties
could result in: loss of revenues; loss of clients; loss of client and cardholder data; fines imposed by payment networks; harm
to our business or reputation resulting from negative publicity; exposure to fraud losses or other liabilities; additional operating
and development costs; or diversion of management, technical and other resources, among other consequences.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
are subject to economic and political risk, the business cycles of our customers and software integration partners and the overall
level of consumer and commercial spending, which could negatively impact our business, financial condition and results of operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
electronic payment industry depends heavily on the overall level of consumer and commercial spending. We are exposed to general
economic conditions that affect consumer confidence, consumer spending, consumer discretionary income and changes in consumer
purchasing habits, including natural disasters and health emergencies, including earthquakes, fires, power outages, typhoons,
floods, pandemics or epidemics such as the coronavirus and manmade events such as civil unrest, labor disruption, international
trade disputes, international conflicts, terrorism, wars and critical infrastructure attacks. A sustained deterioration in general
economic conditions, particularly in the United States, or increases in interest rates, could adversely affect our financial performance
by reducing the number or aggregate volume of transactions made using electronic payments. For example, the recent COVID-19 coronavirus
outbreak has impacted the global economy and negatively affected various aspects of our business, including reductions in the
amount of consumer spending and lending which resulted in a decrease in our revenue and profits. If our customers make fewer sales
of products and services using electronic payments, or consumers spend less money through electronic payments, we will have fewer
transactions to process at lower dollar amounts, resulting in lower revenue.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.45in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
weakening in the economy could have a negative impact on our customers, as well as their customers who purchase products and services
using the payment processing systems to which we provide access, which could, in turn, negatively affect our business, financial
condition and results of operations. For example, in the primary vertical markets that we serve, merchants are affected by macroeconomic
conditions such as employment, personal income and consumer sentiment. If economic conditions deteriorate and our customers experience
decreased demand for their products or services, we would experience a decrease both in volume and number of transactions processed.
In addition, a weakening in the economy could force merchants to close at higher than historical rates in part because many of
them are not as well capitalized as larger organizations, which could expose us to potential credit losses and future transaction
declines. Further, credit card issuers may reduce credit limits and become more selective in their card issuance practices. We
also have a certain amount of fixed and semi-fixed costs, including rent, debt service and salaries, which could limit our ability
to quickly adjust costs and respond to changes in our business and the economy.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Changes
in tax laws or their judicial or administrative interpretations, or becoming subject to additional U.S., state or local taxes
that cannot be passed through to our customers, could negatively affect our business, financial condition and results of operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.9pt 0.25in 0 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
operations are subject to extensive tax liabilities, including federal and state and transactional taxes such as excise, sales/use,
payroll, franchise, withholding, and ad valorem taxes. Changes in tax laws or their judicial or administrative interpretations
could decrease the amount of revenues we receive, the value of any tax loss carryforwards and tax credits recorded on our balance
sheet and the amount of our cash flow and may have a material adverse impact on our business, financial condition and results
of operations. Some of our tax liabilities are subject to periodic audits by the applicable taxing authority which could increase
our tax liabilities. Furthermore, companies in the payment processing industry, including us, may become subject to incremental
taxation in various taxing jurisdictions. Taxing jurisdictions have not yet adopted uniform positions on this topic. If we are
required to pay additional taxes and are unable to pass the tax expense through to our customers, our costs would increase and
our net income would be reduced, which could have a material adverse effect on our business, financial condition and results of
operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Low
demand for new products and the inability to develop and introduce new products at favorable margins could adversely impact our
performance and prospects for future growth.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
competitive advantage is due in part to our intentions to develop and introduce new products in a timely manner at favorable margins.
The uncertainties associated with developing and introducing new products, such as market demand and costs of development and
production, may impede the successful development and introduction of new products on a consistent basis. Introduction of new
technology may result in higher costs to us than that of the technology replaced. That increase in costs, which may continue indefinitely
or until increased demand and greater availability in the sources of the new technology drive down its cost, could adversely affect
our results of operations. Market acceptance of the new products scheduled for introduction in future years may not meet sales
expectations due to various factors, such as the failure to accurately predict market demand, end-user preferences, evolving industry
standards, or the emergence of new or disruptive technologies. Moreover, the ultimate success and profitability of the new products
may depend on our ability to resolve technical and technological challenges in a timely and cost-effective manner, and to achieve
software development efficiencies. Our investments in productive capacity and commitments to fund advertising and product promotions
in connection with these new products could erode profits if those expectations are not met.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
are increasingly dependent on information technology, and potential cyberattacks, security problems, or other disruption and expanding
social media vehicles present new risks.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
rely on information technology networks and systems, including the internet, to process, transmit, and store electronic information,
and to manage or support a variety of business processes, including financial transactions and records, billing, and operating
data. We may purchase some of our information technology from vendors, on whom our systems will depend, and we rely on commercially
available systems, software, tools, and monitoring to provide security for processing, transmission, and storage of confidential
operator and other customer information. We depend upon the secure transmission of this information over public networks. Our
networks and storage applications could be subject to unauthorized access by hackers or others through cyberattacks, which are
rapidly evolving and becoming increasingly sophisticated, or by other means, or may be breached due to operator error, malfeasance
or other system disruptions. In some cases, it will be difficult to anticipate or immediately detect such incidents and the damage
they cause. Any significant breakdown, invasion, destruction, interruption, or leakage of information from our systems could harm
our reputation and business.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
could face substantial competition, which could reduce our market share and negatively impact our net revenue. </I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
are a number of companies that distribute products similar to ours. Many of our anticipated competitors are significantly larger
than we are and have considerably greater financial, technical, marketing, and other resources than we do. Some competitors may
have a lower cost of funds and access to funding sources that are not available to us. We cannot assure you that the competitive
pressures we face will not have a material adverse effect on our business, financial condition, and results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>If
we fail to protect our intellectual property rights, competitors may be able to use our technology, which could weaken our competitive
position, reduce our net revenue, and increase our costs.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
long-term success will depend to some degree on our ability to protect the proprietary technology that we have developed or may
develop or acquire in the future. While our patents may offer some protection, our intellectual property rights may not be sufficiently
comprehensive to prevent our competitors from developing similar competitive products. Although we may aggressively pursue anyone
whom we reasonably believe is infringing upon our intellectual property rights, initiating and maintaining suits against third
parties that may infringe upon our intellectual property rights will require substantial financial resources. We may not have
the financial resources to bring such suits, and if we do bring such suits, we may not prevail. Regardless of our success in any
such actions, we could incur significant expenses in connection with such suits.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Third-party
claims of infringement against us could adversely affect our ability to market our products and require us to redesign our products
or seek licenses from third parties.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may be susceptible to intellectual property lawsuits that could cause us to incur substantial costs, pay substantial damages,
or prohibit us from distributing our products. Whether a product infringes a patent involves complex legal and factual issues,
the determination of which is often uncertain. If any of our products infringe a valid patent, we could be prevented from distributing
that product unless and until we can obtain a license or redesign it to avoid infringement. A license may not be available or
may require us to pay substantial royalties. We also may not be successful in any attempt to redesign the product to avoid any
infringement. Infringement and other intellectual property claims, with or without merit, can be expensive and time-consuming
to litigate, and we may not have the financial and human resources to defend ourselves against any infringement suits that may
be brought against us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Risks
Related to Regulation</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>New
and potential government regulations could adversely affect our ability to provide, or impair the value of, the services we currently
provide to our merchants.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are subject to numerous federal and state regulations that affect the electronic payments industry. Regulation of our industry
has increased significantly in recent years and is constantly evolving. Changes to statutes, regulations or industry standards,
including interpretation and implementation of statutes, regulations or standards, could increase our cost of doing business or
affect the competitive balance. We are also subject to U.S. financial services regulations, numerous consumer protection laws,
escheat regulations and privacy and information security regulations, among other laws, rules and regulations. Failure to comply
with regulations may have an adverse effect on our business, including the limitation, suspension or termination of services provided
to, or by, third parties, and the imposition of penalties or fines. To the extent these regulations negatively impact the business,
operations or financial condition of our clients, our business and results of operations could be materially and adversely affected
because, among other matters, our clients could have less capacity to purchase products and services from us, could decide to
avoid or abandon certain lines of business, or could seek to pass on increased costs to us by negotiating price reductions. We
could be required to invest a significant amount of time and resources to comply with additional regulations or oversight or to
modify the manner in which we contract with or provide products and services to our clients&#894; and those regulations could
directly or indirectly limit how much we can charge for our services. We may not be able to update our existing products and services,
or develop new ones, to satisfy our clients&rsquo; needs. Any of these events, if realized, could have a material adverse effect
on our business, results of operations and financial condition.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
and other laws and regulations, even if not directed at us, may require us to make significant efforts to change our products
and services and may require that we incur additional compliance costs and change how we price our products and services to our
clients and distribution partners. Implementing new compliance efforts is difficult because of the complexity of new regulatory
requirements, and we are devoting and will continue to devote significant resources to ensure compliance. Furthermore, regulatory
actions may cause changes in business practices by us and other industry participants which could affect how we market, price
and distribute our products and services, and which could materially adversely affect our business, financial condition and results
of operations. In addition, even an inadvertent failure to comply with laws and regulations, as well as rapidly evolving social
expectations of corporate fairness, could damage our business or our reputation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Compliance
with the Dodd-Frank Act and other federal and state regulations may increase our compliance costs, limit our revenues and otherwise
negatively affect our business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Since
the enactment of the Dodd-Frank Act, there have been substantial reforms to the supervision and operation of the financial services
industry, including numerous new regulations that have imposed compliance costs and, in some cases, limited revenue sources for
us and our financial institution partners and clients. Among other things, the Dodd-Frank Act established the Consumer Financial
Protection Bureau (&ldquo;CFPB&rdquo;), which is empowered to conduct rule-making and supervision related to, and enforcement
of, federal consumer financial protection laws. The CFPB has issued guidance that applies to &ldquo;supervised service providers,&rdquo;
which the CFPB has defined to include service providers, like us, to CFPB supervised banks and nonbanks. In addition, federal
and state agencies have recently proposed or enacted cybersecurity regulations, such as the Cybersecurity Requirements for Financial
Services Companies issued by the New York State Department of Financial Services and the Advance Notice of Proposed Rulemaking
on Enhanced Cyber Risk Management Standards issued by The Board of Governors of the Federal Reserve System, the Office of the
Comptroller of the Currency and the Federal Deposit Insurance Corporation in October 2016. Such cybersecurity regulations are
applicable to large bank holding companies and their subsidiaries, as well as to service providers to those organizations. Any
new rules and regulations implemented by the CFPB, state or other authorities or in connection with the Dodd-Frank Act could,
among other things, slow our ability to adapt to a rapidly changing industry, require us to make significant additional investments
to comply with them, redirect time and resources to compliance obligations, modify our products or services or the manner in which
they are provided, or limit or change the amount or types of revenue we are able to generate.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interchange
fees, which the payment processor typically pays to the card issuer in connection with credit and debit card transactions, are
subject to increasingly intense legal, regulatory and legislative scrutiny. In particular, the Dodd-Frank Act regulates and limits
debit card fees charged by certain card issuers and allows businesses and organizations to set minimum dollar amounts for the
acceptance of credit cards. Specifically, under the so-called &ldquo;Durbin Amendment&rdquo; to the Dodd-Frank Act, the interchange
fees that certain issuers charge businesses and organizations for debit transactions are regulated by the Federal Reserve and
must be &ldquo;reasonable and proportional&rdquo; to the cost incurred by the issuer in authorizing, clearing and settling the
transactions. Rules released by the Federal Reserve in July 2011 to implement the Durbin Amendment mandate a cap on debit transaction
interchange fees for card issuers with assets of $10 billion or greater. Since October 2011, a payment network may not prohibit
a card issuer from contracting with any other payment network for the processing of electronic debit transactions involving the
card issuer&rsquo;s debit cards, and card issuers and payment networks may not inhibit the ability of businesses and organizations
to direct the routing of debit card transactions over any payment networks that can process the transactions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rules
implementing the Dodd-Frank Act also contain certain prohibitions on payment network exclusivity and merchant routing restrictions.
These restrictions could negatively affect the number of debit transactions processed, and prices charged per transaction, which
would negatively affect our business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
must comply with laws and regulations prohibiting unfair or deceptive acts or practices, and any failure to do so could materially
and adversely affect our business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
and many of our customers are subject to Section 5 of the Federal Trade Commission Act prohibiting unfair or deceptive acts or
practices and various state laws that are similar in scope and subject matter. In addition, provisions of the Dodd-Frank Act that
prohibit unfair, deceptive or abusive acts or practices, the Telemarketing Sales Act and other laws, rules and/or regulations,
may directly impact the activities of certain customers of ours, and in some cases may subject us, as the electronic payment processor
or provider of payment settlement services, to investigations, fees, fines and disgorgement of funds if we are found to have improperly&nbsp;aided
and abetted or otherwise provided the means and instrumentalities to facilitate the illegal or improper activities of a customer
through our services. Various federal and state regulatory enforcement agencies, including the Federal Trade Commission and state
attorneys general have authority to take action against non-banks that engage in UDAAP, or violate other laws, rules and regulations.
To the extent we are processing payments or providing products and services for a customer suspected of violating such laws, rules
and regulations, we may face enforcement actions and incur losses and liabilities that may adversely affect our business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Governmental
regulations designed to protect or limit access to or use of consumer information could adversely affect our ability to effectively
provide our products and services.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to those regulations discussed previously that are imposed by the card networks and NACHA, governmental bodies in the
United States have adopted, or are considering the adoption of, laws and regulations restricting the use, collection, storage,
transfer and disposal of, and requiring safeguarding of, non-public personal information. Our operations are subject to certain
provisions of these laws. Relevant federal privacy laws include the Family Educational Rights and Privacy Act of 1974, the Protection
of Pupil Rights Amendment and the Gramm-Leach-Bliley Act of 1999, which applies directly to a broad range of financial institutions
and indirectly, or in some instances directly, to companies that provide services to financial institutions. The U.S. Children&rsquo;s
Online Privacy Protection Act also regulates the collection of information by operators of websites and other electronic solutions
that are directed to children under 13 years of age. These laws and regulations restrict our collection, processing, storage,
use and disclosure of personal information, may require us to notify individuals of our privacy practices and provide individuals
with certain rights to prevent the use and disclosure of protected information, and mandate certain procedures with respect to
safeguarding and proper description of stored information. Certain state laws impose similar privacy obligations as well as obligations
to provide notification of security breaches of personal information to affected individuals, state officers, consumer reporting
agencies and businesses and governmental agencies. The applicable regulatory framework for privacy issues is evolving and is likely
to continue doing so for the foreseeable future, which creates uncertainty. For example, the California Consumer Privacy Act (CCPA)
of 2018, which became effective January 1, 2020, imposes more stringent requirements with respect to California data privacy.
The CCPA includes provisions that give California residents expanded rights to access and delete certain personal information,
opt out of certain personal information sharing, and receive detailed information about how certain personal information is used.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further,
we are obligated, or will be obligated, by our customers, sponsor banks and software integration partners to maintain the confidentiality
and security of non-public consumer information that our customers and their end customers share with us. Our contracts may require
periodic audits by independent parties regarding our compliance with applicable standards, and may permit our counterparties to
audit our compliance with best practices established by regulatory guidelines with respect to confidentiality and security of
non-public personal information. Our ability to maintain compliance with these standards and satisfy these audits will affect
our ability to attract, grow and maintain business in the future, and any failure to do so could subject us to contractual liability,
each of which could have a material effect on our business and results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
we fail to comply with these laws, regulations or contractual terms, or if we experience security breaches, we could face regulatory
enforcement proceedings, suits for breach of contract and monetary liabilities. Additionally, any such failure could harm the
relationships and reputation we depend on to retain existing customers and software integration partners and obtain new customers
and software integration partners. If federal and state governmental bodies adopt more restrictive privacy laws in the future,
our compliance costs could increase, and it could make our due diligence reviews and monitoring regarding the risk of our customers
more difficult, complex and expensive. As our business grows, we may also be required to invest in a more substantive and complex
compliance management system than the one we currently employ.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>United
States federal legislation and international laws impose certain obligations on the senders of commercial emails, which could
minimize the effectiveness of our platform, and establish financial penalties for non-compliance, which could increase the costs
of our business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Federal Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003, or the CAN-SPAM Act, establishes certain
requirements for commercial email messages and transactional email messages and specifies penalties for the transmission of email
messages that are intended to deceive the recipient as to source or content. Among other things, the CAN-SPAM Act, obligates the
sender of commercial emails to provide recipients with the ability to &quot;opt-out&quot; of receiving future commercial emails
from the sender. In addition, some states have passed laws regulating commercial email practices that are significantly more restrictive
and difficult to comply with than the CAN-SPAM Act. If we were found to be in violation of the CAN-SPAM Act, applicable state
laws governing email not preempted by the CAN-SPAM Act or foreign laws regulating the distribution of email, whether as a result
of violations by our customers or our own acts or omissions, we could be required to pay large penalties, which would adversely
affect our financial condition, significantly harm our business, injure our reputation and erode customer trust. The terms of
any injunctions, judgments, consent decrees or settlement agreements entered into in connection with enforcement actions or investigations
against our company in connection with any of the foregoing laws may also require us to change one or more aspects of the way
we operate our business, which could impair our ability to attract and retain customers or could increase our operating costs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>If
we fail to comply with the Telephone Consumer Protection Act, or the TCPA, we may face significant damages, which could harm our
business, financial condition, results of operations and cash flows.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
utilize and/or intend to utilize telephone calls and text messaging as a means of responding to customer interest, lead generation
and our text payment platform. We generate leads from our website by prompting potential customers to provide their phone numbers
so that we may contact them in response to their interest in specific vehicles. We also intend to engage and pay third parties
to provide us with leads.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
TCPA, as interpreted and implemented by the FCC, imposes significant restrictions on utilization of telephone calls and text messages
to residential and mobile telephone numbers as a means of communication, when the prior consent of the person being contacted
has not been obtained. Violations of the TCPA may be enforced by the FCC or by individuals through litigation, including class
actions and statutory penalties for TCPA violations ranging from $500 to $1,500 per violation, which is often interpreted to mean
per phone call.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
we intend to implement processes and procedures to comply with the TCPA, any failure by us or the third parties on which we rely
for data to adhere to, or successfully implement, appropriate processes and procedures in response to existing or future regulations
could result in legal and monetary liability, fines and penalties, or damage to our reputation in the marketplace, any of which
could have a material adverse effect on our business, financial condition and results of operations. Additionally, any changes
to the TCPA or its interpretation that further restrict the way we contact and communicate with our potential customers or generate
leads, or any governmental or private enforcement actions related thereto, could adversely affect our ability to attract customers
and harm our business, financial condition, results of operations and cash flows.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Risks
Related to this Offering and Our Securities</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Shares
eligible for future sale may have adverse effects on our share price.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sales
of substantial amounts of shares or the perception that such sales could occur may adversely affect the prevailing market price
for our shares. We may issue additional shares in subsequent public offerings or private placements to make new investments or
for other purposes. Therefore, it may not be possible for existing shareholders to participate in such future share issuances,
which may dilute the existing shareholders&rsquo; interests in us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>If
we fail to comply with the rules and regulations under the Sarbanes-Oxley Act, our operating results, our ability to operate our
business and investors&rsquo; views of us may be harmed.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section&nbsp;404
of the Sarbanes-Oxley Act requires public companies to conduct an annual review and evaluation of their internal controls. Ensuring
that we have adequate internal financial and accounting controls and procedures in place so that we can produce accurate financial
statements on a timely basis is a costly and time-consuming effort that will need to be evaluated frequently. As of December 31,
2019, the Company&rsquo;s Principal Financial and Accounting Officer concluded that, as of the end of such period, the Company&rsquo;s
disclosure controls and procedures were not effective to provide reasonable assurance that information that it is required to
disclose in reports that the Company files with the SEC is recorded, processed, summarized, and reported within the time periods
specified by the Exchange Act rules and regulations. Our failure to maintain the effectiveness of our internal controls in accordance
with the requirements of the Sarbanes-Oxley Act could have a material adverse effect on our business. We could lose investor confidence
in the accuracy and completeness of our financial reports, which could have an adverse effect on the price of our common stock.
In addition, our efforts to comply with the rules and regulations under the Sarbanes-Oxley or new or changed laws, regulations,
and standards may differ from the activities intended by regulatory or governing bodies due to ambiguities related to practice.
Regulatory authorities may investigate transactions disclosed in our &ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial
Condition and Results of Operations</I>,&rdquo; and if legal proceedings are initiated against us, it may harm our business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
do not anticipate paying any cash dividends on our capital stock in the foreseeable future.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
currently intend to retain all of our future earnings to finance the growth and development of our business, and therefore, we
do not anticipate paying any cash dividends on our capital stock in the foreseeable future. We believe it is likely that our board
of directors will continue to conclude, that it is in the best interests of the Company and its shareholders to retain all earnings
(if any) for the development of our business. In addition, the terms of any future debt agreements may preclude us from paying
dividends. As a result, capital appreciation, if any, of our common stock will be your sole source of gain for the foreseeable
future.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Investors
in this offering will experience immediate and substantial dilution in net tangible book value.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
public offering price per unit is substantially higher than the net tangible book value per share of our outstanding shares of
common stock. As a result, investors in this offering will incur immediate dilution of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share, based on the public offering
price of $ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share. Investors in this
offering will pay a price per unit that substantially exceeds the book value of our assets after subtracting our liabilities.
[To the extent that the warrants sold in this offering are exercised, you will experience further dilution.] See &ldquo;Dilution&rdquo;
for a more complete description of how the value of your investment will be diluted upon the completion of this offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; background-color: white; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Immediately
prior to the consummation of this offering, we expect to have approximately outstanding stock options to purchase our Common Stock
with exercise prices that are below the assumed public offering price of our Common Stock. To the extent that these options are
exercised, there will be further dilution.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
common stock has a limited trading market, which could affect your ability to sell shares of our common stock and the price you
may receive for our common stock.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 8pt 0 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
common stock is currently traded in the over-the-counter market maintained by OTC Markets, Inc. under the symbol &ldquo;APCX&rdquo;.
However, these markets are an unorganized, inter-dealer, over-the-counter market that provides significantly less liquidity than
Nasdaq or other national securities exchanges, there has been only limited trading activity in our common stock, and we have a
relatively small public float compared to the number of our shares outstanding. Further, while we intend to apply to list our
common stock on the Nasdaq Capital Market, we cannot predict the extent to which investors&rsquo; interest in our common stock
will provide an active and liquid trading market. If an active trading market for our common stock does not develop or is not
sustained following this offering, you may not be able to sell your shares quickly or at the market price. Our ability to raise
capital to continue to fund operations by selling shares of our common stock and our ability to acquire other companies or technologies
by using shares of our common stock as consideration may also be impaired. This public offering price of our common stock will
be determined by negotiations between us and the underwriters and may not be indicative of the market prices of our common stock
that will prevail in the trading market.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>There
can be no assurances that our shares once listed on The Nasdaq Capital Market will not be subject to potential delisting if we
do not continue to maintain the listing requirements of The Nasdaq Capital Market.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
intend to apply to list the shares of our common stock on The Nasdaq Capital Market, or Nasdaq, under the symbol &ldquo;APCX &rdquo;.
An approval of our listing application by Nasdaq will be subject to, among other things, our fulfilling all of the listing requirements
of Nasdaq. In addition, Nasdaq has rules&nbsp;for continued listing, including, without limitation, minimum market capitalization
and other requirements. Failure to maintain our listing (i.e., being de-listed from Nasdaq), would make it more difficult for
shareholders to sell our common stock and more difficult to obtain accurate price quotations on our common stock. This could have
an adverse effect on the price of our common stock. Our ability to issue additional securities for financing or other purposes,
or otherwise to arrange for any financing we may need in the future, may also be materially and adversely affected if our common
stock is not traded on a national securities exchange.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>If
we cannot satisfy, or continue to satisfy, the initial listing requirements and other rules of the Nasdaq Capital Market, our
securities may not be listed or may be delisted, which could negatively impact the price of our securities and your ability to
sell them.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
will seek to have our securities approved for listing on the Nasdaq Capital Market upon consummation of this offering. We cannot
assure you that we will be able to meet those initial listing requirements at that time. Even if our securities are listed on
the Nasdaq Capital Market, we cannot assure you that our securities will continue to be listed on the Nasdaq Capital Market.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, following this offering, in order to maintain our listing on the Nasdaq Capital Market, we will be required to comply
with certain rules of the Nasdaq Capital Market, including those regarding minimum shareholders&rsquo; equity, minimum share price,
minimum market value of publicly held shares, and various additional requirements. Even if we initially meet the listing requirements
and other applicable rules of the Nasdaq Capital Market, we may not be able to continue to satisfy these requirements and applicable
rules. If we are unable to satisfy the Nasdaq Capital Market criteria for maintaining our listing, our securities could be subject
to delisting.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
the Nasdaq Capital Market does not list our securities, or subsequently delists our securities from trading, we could face significant
consequences, including:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a limited availability for market quotations
    for our securities;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reduced liquidity with respect to our securities;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a determination that our Common Stock is a &ldquo;penny
    stock,&rdquo; which will require brokers trading in our Common Stock to adhere to more stringent rules and possibly result
    in a reduced level of trading activity in the secondary trading market for our Common Stock;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">limited amount of news and analyst coverage;
    and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
        decreased ability to issue additional securities or obtain additional financing in the future.</FONT></TD></TR>


</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
proposed reverse stock split could cause our stock price to decline relative to its value before the split and decrease the liquidity
of shares of our common stock.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
will effect a 1-for-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; reverse stock split of our issued and outstanding
common stock immediately following the effectiveness but prior to the closing of this offering. There is no assurance that that
the reverse stock split will not cause an actual decline in the value of our outstanding common stock. The liquidity of the shares
of our common stock may be affected adversely by the reverse stock split given the reduced number of shares that will be outstanding
following the reverse stock split, especially if the market price of our common stock does not increase as a result of the reverse
stock split. In addition, the reverse stock split may increase the number of stockholders who own odd lots (less than 100 shares)
of our common stock, creating the potential for such stockholders to experience an increase in the cost of selling their shares
and greater difficulty effecting such sales.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
executive officers and directors, and their affiliated entities, own a significant percentage of our stock and will be able to
exert significant control over matters subject to stockholder approval.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
consummation of this offering (based on shares outstanding as of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2021), our executive
officers and directors, together with entities affiliated with such individuals, will beneficially own approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
of our Common Stock (approximately&nbsp;&nbsp;&nbsp; % if the underwriters&rsquo; over-allotment option is exercised in full).
Accordingly, these stockholders may, as a practical matter, continue to be able to exert substantial control of the Company after
this offering. This concentration of ownership could delay or prevent a change in control of the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
have broad discretion in the use of the net proceeds from this offering and may not use them effectively.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
management will have broad discretion in the application of the net proceeds from this offering, including for any of the purposes
described in the section entitled &ldquo;Use of Proceeds,&rdquo; and you will not have the opportunity as part of your investment
decision to assess whether the net proceeds will be used appropriately. Because of the number and variability of factors that
will determine our use of the net proceeds from this offering, their ultimate use may vary substantially from their currently
intended use. Our management might not apply our net proceeds in ways that ultimately increase the value of your investment. We
currently intend to use the net proceeds from this offering to create and expand business operations and launch new product lines,
provide competitive compensation to attract and retain talented employees, expand sales and marketing of present and future products,
continued research and development and general working capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
expected use of net proceeds from this offering represents our current intentions based upon our present plans and business condition.
As of the date of this prospectus, we cannot predict with certainty all of the particular uses for the net proceeds to be received
upon the completion of this offering, or the amounts that we will actually spend on the uses set forth above. The amounts and
timing of our actual use of the net proceeds will vary depending on numerous factors, including the commercial success of our
systems and the costs of our research and development activities, as well as the amount of cash used in our operations. As a result,
our management will have broad discretion in the application of the net proceeds, and investors will be relying on our judgment
regarding the application of the net proceeds of this offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
failure by our management to apply these funds effectively could harm our business. Pending their use, we may invest the net proceeds
from this offering in short-term, investment-grade, interest-bearing securities. These investments may not yield a favorable return
to our stockholders. If we do not invest or apply the net proceeds from this offering in ways that enhance stockholder value,
we may fail to achieve expected financial results, which could cause our stock price to decline.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
officers and directors are entitled to indemnification from us for liabilities under our articles of incorporation, which could
be costly to us and may discourage the exercise of stockholder rights.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
articles of incorporation provide that we possess and may exercise all powers of indemnification of our officers, directors, employees,
agents and other persons and our bylaws also require us to indemnify our officers and directors as permitted under the provisions
of the Wyoming Revised Statutes (&ldquo;WRS&rdquo;). We also have contractual indemnification obligations under our agreements
with our directors and officers. The foregoing indemnification obligations could result in our company incurring substantial expenditures
to cover the cost of settlement or damage awards against directors and officers. These provisions and resultant costs may also
discourage our company from bringing a lawsuit against directors, officers and employees for breaches of their fiduciary duties,
and may similarly discourage the filing of derivative litigation by our stockholders against our directors, officers and employees
even though such actions, if successful, might otherwise benefit our company and stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
bylaws and Wyoming law may discourage, delay or prevent a change of control of our company or changes in our management, which
could have the result of depressing the trading price of our common stock.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain
anti-takeover provisions of Wyoming law could have the effect of delaying or preventing a third party from acquiring us, even
if the acquisition arguably could benefit our stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0; text-indent: 24pt; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Though
not now, we may be or in the future we may become subject to Wyoming&rsquo;s control share law. A corporation is subject to Wyoming&rsquo;s
control share law if it has more than 200 stockholders, at least 100 of whom are stockholders of record and residents of Wyoming,
and it does business in Wyoming or through an affiliated corporation. The law focuses on the acquisition of a &ldquo;controlling
interest&rdquo; which means the ownership of outstanding voting shares sufficient, but for the control share law, to enable the
acquiring person to exercise the following proportions of the voting power of the corporation in the election of directors: (i)
one-fifth or more but less than one-third, (ii) one-third or more but less than a majority, or (iii) a majority or more. The ability
to exercise such voting power may be direct or indirect, as well as individual or in association with others.</FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
effect of the control share law is that the acquiring person, and those acting in association with it, obtains only such voting
rights in the control shares as are conferred by a resolution of the stockholders of the corporation, approved at a special or
annual meeting of stockholders. The control share law contemplates that voting rights will be considered only once by the other
stockholders. Thus, there is no authority to strip voting rights from the control shares of an acquiring person once those rights
have been approved. If the stockholders do not grant voting rights to the control shares acquired by an acquiring person, those
shares do not become permanent non-voting shares. The acquiring person is free to sell its shares to others. If the buyers of
those shares themselves do not acquire a controlling interest, their shares do not become governed by the control share law.</FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
control shares are accorded full voting rights and the acquiring person has acquired control shares with a majority or more of
the voting power, any stockholder of record, other than an acquiring person, who has not voted in favor of approval of voting
rights is entitled to demand fair value for such stockholder&rsquo;s shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Wyoming&rsquo;s
control share law may have the effect of discouraging takeovers of the corporation.</FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to the control share law, Wyoming has a business combination law which prohibits certain business combinations between
Wyoming corporations and &ldquo;interested stockholders&rdquo; for three years after the &ldquo;interested stockholder&rdquo;
first becomes an &ldquo;interested stockholder,&rdquo; unless the corporation&rsquo;s board of directors approves the combination
in advance. For purposes of Wyoming law, an &ldquo;interested stockholder&rdquo; is any person who is (i) the beneficial owner,
directly or indirectly, of ten percent or more of the voting power of the outstanding voting shares of the corporation, or (ii)
an affiliate or associate of the corporation and at any time within the three previous years was the beneficial owner, directly
or indirectly, of ten percent or more of the voting power of the then outstanding shares of the corporation. The definition of
the term &ldquo;business combination&rdquo; is sufficiently broad to cover virtually any kind of transaction that would allow
a potential acquirer to use the corporation&rsquo;s assets to finance the acquisition or otherwise to benefit its own interests
rather than the interests of the corporation and its other stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
effect of Wyoming&rsquo;s business combination law is to potentially discourage parties interested in taking control of our company
from doing so if it cannot obtain the approval of our board of directors.</FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Various
provisions of our bylaws may delay, defer or prevent a tender offer or takeover attempt of us that a stockholder might consider
in his or her best interest. Our bylaws may be adopted, amended or repealed by the affirmative vote of the holders of at least
a majority of our outstanding shares of capital stock entitled to vote for the election of directors, and except as provided by
Wyoming law, our board of directors shall have the power to adopt, amend or repeal the bylaws by a vote of not less than a majority
of our directors. The interests of these stockholders and directors may not be consistent with your interests, and they may make
changes to the bylaws that are not in line with your concerns.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>If
securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our
stock price and trading volume could decline.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
trading market for our Common Stock will depend in part on the research and reports that securities or industry analysts publish
about us or our business. Securities and industry analysts do not currently, and may never, publish research on our company. If
no securities or industry analysts commence coverage of our company, the trading price for our stock would likely be negatively
impacted. In the event securities or industry analysts initiate coverage, if one or more of the analysts who covers us downgrades
our stock or publishes inaccurate or unfavorable research about our business, our stock price may decline. If one or more of these
analysts ceases coverage of our company or fails to publish reports on us regularly, demand for our stock could decrease, which
might cause our stock price and trading volume to decline.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="special"></A>SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
prospectus contains forward-looking statements. Such forward-looking statements include those that express plans, anticipation,
intent, contingency, goals, targets or future development and/or otherwise are not statements of historical fact. These forward-looking
statements are based on our current expectations and projections about future events and they are subject to risks and uncertainties
known and unknown that could cause actual results and developments to differ materially from those expressed or implied in such
statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
some cases, you can identify forward-looking statements by terminology, such as &ldquo;expects,&rdquo; &ldquo;anticipates,&rdquo;
&ldquo;intends,&rdquo; &ldquo;estimates,&rdquo; &ldquo;plans,&rdquo; &ldquo;believes,&rdquo; &ldquo;seeks,&rdquo; &ldquo;may,&rdquo;
&ldquo;should,&rdquo; &ldquo;could&rdquo; or the negative of such terms or other similar expressions. Accordingly, these statements
involve estimates, assumptions and uncertainties that could cause actual results to differ materially from those expressed in
them. Any forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">You
should not place undue reliance on forward looking statements. The cautionary statements set forth in this prospectus identify
important factors which you should consider in evaluating our forward-looking statements. These risks include, but are not limited
to, the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="width: 95%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt; line-height: 106%">uncertainty
    </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">associated <FONT STYLE="letter-spacing: -0.05pt">with
    </FONT>anticipated <FONT STYLE="letter-spacing: -0.05pt">launch</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our</FONT>
    text payment platform and other potential advanced payment solutions we intend to launch in the future;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt; line-height: 106%">substantial
    investment and costs associated with new potential revenue streams and their corresponding contractual obligations; </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">dependence on third-party
    <FONT STYLE="letter-spacing: -0.05pt">channel</FONT> and <FONT STYLE="letter-spacing: -0.05pt">referral</FONT> partners, <FONT STYLE="letter-spacing: -0.05pt">who
    comprise</FONT> a <FONT STYLE="letter-spacing: -0.05pt">significant</FONT> portion of <FONT STYLE="letter-spacing: -0.05pt">our
    sales force, for</FONT> gaining new clients;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD><P STYLE="font: 10pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
        <FONT STYLE="letter-spacing: -0.05pt">slowdown</FONT> or reduction <FONT STYLE="letter-spacing: 0.05pt">in</FONT> our
        <FONT STYLE="letter-spacing: -0.05pt">sales</FONT> in <FONT STYLE="letter-spacing: -0.05pt">due</FONT> to a reduction
        <FONT STYLE="letter-spacing: 0.05pt">in</FONT> <FONT STYLE="letter-spacing: -0.05pt">end user</FONT> demand, unanticipated
        <FONT STYLE="letter-spacing: -0.05pt">competition,</FONT> regulatory issues, or <FONT STYLE="letter-spacing: -0.05pt">other
        unexpected circumstances;</FONT></FONT></P>
        <P STYLE="font: 10pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">&nbsp;</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">uncertainty
    regarding our ability to achieve profitability and positive cash flow through the commercialization of the products we offer
    or intend to offer in the future; </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">dependence
    on third-party payment processors to facilitate our merchant services capabilities;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">delay
    in or failure to obtain regulatory approval of our text payment system or any future products in additional countries;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">our
    ability to operate our business while timely making payments pursuant to our loan agreements;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">our
    need to raise additional financing to fund daily operations and successfully grow our Company;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">our
    ability to retain and recruit appropriate employees, in particular a productive sales force;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">current
    and future laws and regulations;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">general
    economic uncertainty associated with the COVID-19 pandemic;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">the
    adverse effects of COVID-19, and its unpredictable duration, in regions where we have customers, employees and distributors;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">the
    adverse effects of COVID-19 on processing volumes resulting from (a) limitations on in-person access to our merchants&rsquo;
    businesses or (b) the unwillingness of customers to visit our merchants&rsquo; businesses;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">the
    possibility that the economic impact of COVID-19 will lead to changes in how consumers make purchases and we are unable to
    monetize such changes;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">the
    possibility that the economic impact of COVID-19, and its associated high unemployment rate, will lead to less consumer spending
    thus resulting in loss of revenues;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">the
        possibility that the economic impact of COVID-19, will result in our merchants&rsquo; businesses failing to reopen once
        restrictions are further eased; and</FONT></TD></TR>
        <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 106%">the
        other factors described in &ldquo;Risk Factors.&rdquo;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">You
should read this prospectus (as it may be supplemented or amended) and the documents that we reference herein and therein and
have filed as exhibits to the registration statement, of which this prospectus is part, completely and with the understanding
that our actual future results may be materially different from what we expect. You should assume that the information
appearing in this prospectus is accurate as of the date on the front cover of this prospectus only. Because the risk factors
referred to above, as well as the Risk Factors beginning on page 11 of this prospectus, could cause actual
results or outcomes to differ materially from those expressed in any forward-looking statements made by us or on our behalf,
you should not place undue reliance on any forward-looking statements. Further, any forward-looking statement speaks only as
of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or
circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. New factors
emerge from time to time, and it is not possible for us to predict which factors will arise. In addition, we cannot assess
the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any forward-looking statements. We qualify all of the information
presented in this prospectus, and particularly our forward-looking statements, by these cautionary statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Except
to the extent required by applicable laws or rules, we undertake no obligation to publicly update or revise any forward-looking
statement, whether written or oral, that may be made from time to time, whether as a result of new information, future events
or otherwise. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are
expressly qualified in their entirety by the cautionary statements contained above and throughout this prospectus and in the documents
incorporated by reference in this prospectus. We qualify all of our forward-looking statements by these cautionary statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">IN
ADDITION TO THE ABOVE RISKS, BUSINESSES ARE OFTEN SUBJECT TO RISKS NOT FORESEEN OR FULLY APPRECIATED BY MANAGEMENT. IN REVIEWING
THIS PROSPECTUS AND THE DOCUMENTS INCORPORATED BY REFERENCE IN THIS PROSPECTUS, POTENTIAL INVESTORS SHOULD KEEP IN MIND THAT THERE
MAY BE OTHER POSSIBLE RISKS THAT COULD BE IMPORTANT.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0pt 0 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>EXPLANATORY
NOTE REGARDING REVERSE STOCK SPLIT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
will effect a reverse stock split of our common stock at a ratio of 1-for-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; following the
effectiveness of the registration statement of which this prospectus forms a part and prior to the closing of this offering. No
fractional shares will be issued in connection with the reverse stock split and all such fractional interests will be rounded
up to the nearest whole number of shares of common stock. The conversion or exercise prices of our issued and outstanding convertible
securities, stock options and warrants will be adjusted accordingly. All information presented in this prospectus other than in
our financial statements and the notes thereto assumes a 1-for-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; reverse stock split
of our outstanding shares of common stock, and unless otherwise indicated, all such amounts and corresponding conversion price
or exercise price data set forth in this prospectus have been adjusted to give effect to such assumed reverse stock split.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B>USE
OF PROCEEDS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
estimate that we will receive net proceeds of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million from the
sale of the shares of common stock offered in this offering, or approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
million if the underwriters exercise their over-allotment option in full, and after deducting the underwriting discounts and commissions
and estimated offering expenses payable by us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
currently anticipate an approximate allocation of to use the net proceeds from this offering, together with our existing cash
as follows&nbsp;:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; background-color: white; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 81%; text-align: justify; text-indent: -10pt; padding-left: 10pt">Digital Banking &amp; Payment Acceptance Business Expansion (Including Partnership, Licensing and Development costs)</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; text-indent: -10pt; padding-left: 10pt">Telehealth and Remote Patient Monitoring Business Expansion</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Research and Development</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Sales and Marketing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; text-indent: -10pt; padding-left: 10pt">Payment of Underwriting and Placement commissions as well as offering expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; text-indent: -10pt; padding-left: 10pt">Working Capital, Accrued Salaries and Operating Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">$</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
may change the amount of net proceeds to be used specifically for any of the foregoing purposes. The amounts and timing of our
actual expenditures will depend upon numerous factors, including our sales and marketing and commercialization efforts, demand
for our products, our operating costs and the other factors described under &ldquo;Risk Factors&rdquo; in this prospectus. Accordingly,
our management will have significant discretion and flexibility in applying the net proceeds from this offering. Pending any use,
as described above, we intend to invest the net proceeds in high-quality, short-term, interest-bearing securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although
we may use a portion of the net proceeds of this offering for the acquisition or licensing, as the case may be, of additional
technologies, other assets or businesses, or for other strategic investments or opportunities, we have no current understandings,
agreements or commitments to do so beyond the itemized expansion costs listed above.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>MARKET
FOR OUR COMMON STOCK</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify">Prior
to this offering, shares of our common stock were quoted on the OTC Markets under the symbol &ldquo;APCX.&rdquo; Although our
shares have been quoted on the OTC Markets since 201<FONT STYLE="background-color: white">0,</FONT> because trading on the OTC
Markets has been infrequent and limited in volume, the prices at which such transactions occurred may not necessarily reflect
the price that would be paid for our common stock in a more liquid market. As of February 12, 2021, there were approximately 368
record holders of our common stock and an estimated 1236 beneficial holders of our common stock.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in; background-color: white; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; background-color: white; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trading
activity for our common stock can be found at www.otcmarkets.com.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; background-color: white; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
intend to apply to list our common stock on the Nasdaq Capital Market under the symbol &ldquo;APCX.&rdquo; However, we cannot
assure you that a liquid trading market for our common stock will develop or be sustained after this offering. You may not be
able to sell your shares quickly or at the market price if trading in our common stock is not active. See &ldquo;Underwriters&rdquo;
for more information regarding our arrangements with the underwriters and the factors considered in setting the initial public
offering price.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="dividend"></A>DIVIDEND
POLICY</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
currently intend to retain all available funds and any future earnings to support our operations and finance the growth and development
of our business, and therefore do not intend to pay cash dividends on our common stock for the foreseeable future. Any future
determination related to our dividend policy will be made at the discretion of our board of directors and will depend on, among
other factors, our results of operations, financial condition, capital requirements, contractual restrictions, business prospects
and other factors our board of directors may deem relevant. Investors should not purchase our common stock with the expectation
of receiving cash dividends.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="capitalization"></A>CAPITALIZATION</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth our capitalization as of September 30, 2020:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">on
                                         an actual basis; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">on
                                         an as-adjusted basis to reflect the issuance and sale by us of shares of our common stock
                                         in this offering at the assumed public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share after deducting
                                         underwriting discounts and commissions and estimated offering expenses payable by us
                                         and the receipt by us of the proceeds of such sale.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">You
should read this information together with the section titled &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition
and Results of Operations&rdquo; and our consolidated financial statements and related notes included elsewhere in this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"><B>As of September 30, 2020</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"><B>Actual</B></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"><B>As Adjusted</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="text-align: center"><B>(unaudited)</B></TD><TD STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="text-align: center"><B>(unaudited)</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="7">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; text-align: left; padding-bottom: 2.5pt">Cash and cash equivalents</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 2.5pt double; text-align: right">46,316</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; width: 10%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Long-term debt, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">238,174</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Stockholders&rsquo; equity:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Common stock, $0.001 par value; 1,000,000,000 shares authorized, 88,724,075 &nbsp;shares issued and outstanding (actual); &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_______ shares issued and outstanding (as adjusted)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">87,822</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,870,457</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Non-controlling interest in subsidiary</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(43,658,819</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Total shareholders&rsquo; equity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(7,700,540</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Total capitalization</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">357,199</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
giving effect to the planned reverse stock split of our common stock at a ratio of 1-for-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , the number of shares of common stock
to be outstanding after this offering is based on shares of common stock outstanding at &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2021, and excludes the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                         exercise of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outstanding stock options under our stock option plan at a weighted average
                                         exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares
                                         available for grant under our stock option plan.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Unless
otherwise indicated, all information in this prospectus reflects or assumes:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">no
                                         exercise by the underwriters of their option to purchase up to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                         additional shares of common stock in this offering.</FONT></TD></TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(See
&ldquo;Prospectus Summary&mdash;The Offering&rdquo; above for information on shares of common stock, options and warrants as of
September 30, 2020.)</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="dilution"></A>DILUTION&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.4in">If you invest in our
common stock in this offering, your ownership interest will be immediately diluted to the extent of the difference between the
public offering price per share of our common stock and the as adjusted net tangible book value per share of our common stock
immediately after this offering.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of September 30, 2020, our historical net tangible book value (deficit) was $&nbsp;(7.7)&nbsp;million, or $&nbsp;( &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) per share
of our common stock. Net tangible book value (deficit) per share represents our total tangible assets (total assets less intangible
assets) less total liabilities and convertible preferred stock, divided by the total number of our outstanding shares of common
stock as of September 30, 2020.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
giving effect to the sale and issuance of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of common
stock in this offering, at the assumed initial public offering price of $ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, the most recent reported sale price of our common stock on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2021, after deducting estimated underwriting discounts and
commissions and estimated offering expenses payable by us, our as adjusted net tangible book value as of September 30, 2020 would
have been approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million, or $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share of our common stock. This represents an immediate increase in net tangible book value of approximately $ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share to our existing stockholders and an immediate dilution of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share to new investors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dilution
per share to investors participating in this offering is determined by subtracting as adjusted net tangible book value per share
after this offering from the initial public offering price per share paid by investors participating in this offering. The following
table illustrates this dilution (without giving effect to any exercise by the underwriters of their option to purchase additional
shares):</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; vertical-align: top; text-align: left; width: 72%">Assumed<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; font-style: normal; font-weight: 400"> </FONT>public
    offering price per share</TD>
    <TD STYLE="font-size: 10pt; vertical-align: bottom; width: 28%">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-left: 20pt; font-size: 10pt; vertical-align: top; text-align: left">Historical net tangible book value per share as of September 30, 2020</TD>
    <TD STYLE="font-size: 10pt; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="font-size: 10pt; vertical-align: top">Net tangible book value per share as of September 30, 2020, before giving effect to this offering&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 1pt; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 20pt; font-size: 10pt; vertical-align: top; text-align: left">Increase in net tangible book value per share attributable to investors participating in this offering&nbsp;</TD>
    <TD STYLE="font-size: 10pt; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; vertical-align: top">As adjusted net tangible book value per share immediately after this offering</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 1pt; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; vertical-align: top">Dilution in as adjusted net tangible book value per share to new investors participating in this offering</TD>
    <TD STYLE="border-top: Black 1pt solid; font-size: 1pt; vertical-align: bottom; border-bottom: Black 2pt double">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
dilution information discussed above is illustrative and will change based on the actual public offering price and other
terms of this offering determined at pricing. If the underwriters exercise their option to purchase additional shares in full,
our as adjusted net tangible book value per share after this offering would be approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
per share, and the dilution in as adjusted net tangible book value per share to new investors participating in this offering would
be $ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
increase (decrease) in the assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
per share, would increase (decrease) the as adjusted net tangible book value by $ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share and the dilution to investors participating in this offering by $ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after
deducting estimated underwriting discounts and commissions and estimated expenses payable by us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Similarly,
each increase (decrease) of one&nbsp;million shares in the number of shares offered by us in this offering would increase (decrease)
the as adjusted net tangible book value by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share
and the dilution to investors participating in this offering by $ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, assuming the assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, remains the same, assuming the number of shares sold in the concurrent private placements are decreased (increased) accordingly
and after deducting estimated underwriting discounts and commissions and estimated expenses payable by us.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table summarizes, on an as adjusted basis as of September 30, 2020, the differences between the number of shares of
common stock purchased from us, the total cash consideration and the average price per share paid to us by existing stockholders
and by new investors purchasing shares in this offering at the assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
per share, before deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. As
the table shows, new investors purchasing shares of common stock in this offering will pay an average price per share substantially
higher than our existing investors paid.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="text-align: center; font-size: 8pt; font-weight: bold">SHARES</TD>
    <TD STYLE="text-align: center; font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="text-align: center; font-size: 8pt; font-weight: bold">TOTAL</TD>
    <TD STYLE="text-align: center; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 8pt; font-weight: bold">AVERAGE</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="text-align: center; font-size: 8pt; font-weight: bold; border-bottom: black 1pt solid">PURCHASED</TD>
    <TD STYLE="text-align: center; font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="text-align: center; font-size: 8pt; font-weight: bold; border-bottom: black 1pt solid">CONSIDERATION</TD>
    <TD STYLE="text-align: center; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 8pt; font-weight: bold">PRICE&nbsp;PER</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 8pt; width: 51%">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; width: 2%">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; font-weight: bold; border-bottom: black 1pt solid; border-top-color: black; border-top-width: 1pt; width: 7%">NUMBER</TD>
    <TD STYLE="font-size: 8pt; width: 2%">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; font-weight: bold; border-bottom: black 1pt solid; border-top-color: black; border-top-width: 1pt; width: 7%">PERCENT</TD>
    <TD STYLE="font-size: 8pt; font-weight: bold; border-bottom: black 1pt solid; border-top-color: black; border-top-width: 1pt; width: 2%">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; width: 2%">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; font-weight: bold; border-bottom: black 1pt solid; border-top-color: black; border-top-width: 1pt; width: 7%">AMOUNT</TD>
    <TD STYLE="font-size: 8pt; width: 2%">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; font-weight: bold; border-bottom: black 1pt solid; border-top-color: black; border-top-width: 1pt; width: 7%">PERCENT</TD>
    <TD STYLE="font-size: 8pt; font-weight: bold; border-bottom: black 1pt solid; border-top-color: black; border-top-width: 1pt; width: 2%">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; width: 2%">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; font-weight: bold; border-bottom: black 1pt solid; width: 7%">SHARE</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9px; vertical-align: top; text-align: left">Existing stockholders</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">%&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">$</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">%&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">$</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-left: 9px; vertical-align: top; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9px; vertical-align: top; text-align: left">New investors participating in this offering</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-size: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 1pt">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 45px; text-align: left">Total</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; font: 11pt Calibri, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">100</TD>
    <TD STYLE="padding-bottom: 2pt">%&nbsp;</TD>
    <TD STYLE="padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double">$</TD>
    <TD STYLE="padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: right">100</TD>
    <TD>%&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
the underwriters exercise their option to purchase additional shares in full, the number of shares of common stock held by existing
stockholders will be reduced to&nbsp;&nbsp;&nbsp;&nbsp;% of the total number of shares of common stock to be outstanding after
this offering, and the number of shares of common stock held by investors participating in this offering will be further increased
to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the total number of shares of common stock to be outstanding after this offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
giving effect to the planned reverse stock split of our common stock at a ratio of 1-for<FONT STYLE="background-color: White">-
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, t</FONT>he number of shares of common stock to be outstanding after this offering is based on shares of common stock outstanding
at &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2021, and excludes the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the exercise of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outstanding stock options under our stock
option plan at a a weighted average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><P STYLE="margin: 0pt 0; font: 10pt/107% Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares available for grant under our stock option
plan.</P></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless
otherwise indicated, all information in this prospectus reflects or assumes:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">no
                                         exercise by the underwriters of their option to purchase up to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                         additional shares of common stock in this offering.</FONT></TD></TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">To
the extent that outstanding options are exercised or shares are issued under our equity incentive plans, you will experience further
dilution. In addition, we may choose to raise additional capital due to market conditions or strategic considerations even if
we believe we have sufficient funds for our current or future operating plans. To the extent that additional capital is raised
through the sale of equity or convertible debt securities, the issuance of these securities may result in further dilution to
our stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="selected"></A>SELECTED
FINANCIAL INFORMATION</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
statements of operations data for the years ended December&nbsp;31, 2018 and 2019 and the balance sheet data as of December&nbsp;31,
2018 and 2019 are derived from our audited consolidated financial statements included elsewhere in this prospectus. The statement
of operations data for the nine months ended September 30, 2019 and 2020 and the balance sheet data as of September 30, 2020 have
been derived from our unaudited financial statements appearing at the end of this prospectus and have been prepared on the same
basis as the audited financial statements. You should read this data together with our consolidated financial statements and related
notes included elsewhere in this prospectus and the information under the caption &ldquo;Management&rsquo;s Discussion and Analysis
of Financial Condition and Results of Operations.&rdquo; Our historical results are not necessarily indicative of the results
to be expected in the future for a full year or any interim period.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Statements
of Operations Data</B>&nbsp;</FONT></P>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">For
                                         the nine-months ended</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">September
                                         30, 2020</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">(unaudited)</P></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">For
                                         the year ended</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">December
                                         31, 2019</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">(audited)</P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; font-weight: bold">Revenue</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">241,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">256,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Gross Profit (Loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">138,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">155,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Loss from Operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,694,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(948,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt">Other Income (Loss)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(205,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(395,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Net Income (Loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,898,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,343,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Net Income (Loss) per basic share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.03</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.02</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Net Income (Loss) per Diluted Share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
net income (loss) per basic and diluted share data does not reflect the proposed reverse stock split at a ratio of 1-for-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Balance
Sheet Data</B>&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><B>As of September 30, 2020 (unaudited)</B></TD><TD STYLE="padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0"><B>As of December 31, 2019</B></P>
                                                                               <P STYLE="margin-top: 0; margin-bottom: 0"><B>(audited)</B></P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Current Assets</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; text-align: right">85,000</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; text-align: right">85,000</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Total Assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">357,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">85,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Total Liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,058,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">7,530,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Total Stockholders&rsquo; Equity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(7,701,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(7,445,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="managements"></A>MANAGEMENT&rsquo;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">You
should read the following discussion and analysis of our financial condition and results of operations together with the &ldquo;Selected
Financial Information&rdquo; section of this prospectus and our consolidated financial statements and the related notes appearing
at the end of this prospectus. Some of the information contained in this discussion and analysis or set forth elsewhere in this
prospectus, including information with respect to our plans and strategy for our business and related financing, includes forward-looking
statements that involve risks, uncertainties and assumptions. You should read the &ldquo;Special Note Regarding Forward-Looking
Statements&rdquo; and &ldquo;Risk Factors&rdquo; sections of this prospectus for a discussion of important factors that could
cause actual results to differ materially from the results described in or implied by the forward-looking statements contained
in the following discussion and analysis. All share and per share amounts presented herein have been restated to reflect the implementation
of the 1-for-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; reverse stock split as if it had occurred at the beginning of the earliest period presented, except for amounts
presented in the financial statements and related notes included elsewhere in this prospectus.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Overview</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
intend to simplify and streamline the <FONT STYLE="letter-spacing: -0.05pt">digital financial services for corporations, SMEs
and consumers through innovative payment</FONT> processing and digital banking technologies that complement <FONT STYLE="letter-spacing: -0.05pt">our
</FONT>core <FONT STYLE="letter-spacing: -0.05pt">merchant</FONT> services capabilities. <FONT STYLE="letter-spacing: -0.05pt">Our
company&rsquo;s merchant</FONT> services provide <FONT STYLE="letter-spacing: -0.05pt">financial</FONT> processing <FONT STYLE="letter-spacing: -0.05pt">for
businesses</FONT> to accept cashless and/or contactless <FONT STYLE="letter-spacing: -0.05pt">payments, such</FONT> as credit
cards, <FONT STYLE="letter-spacing: -0.05pt">ACH, wireless</FONT> payments, and <FONT STYLE="letter-spacing: -0.05pt">more. Our
</FONT>patented, exclusively licensed and/or proprietary merchant services <FONT STYLE="letter-spacing: -0.05pt">software offers
or will offer integrated solutions for frictionless digital and mobile payment acceptance; we are supplementing these capabilities
with licensed software that solves for multi-use case, multi-channel, API-driven, account-based issuer processing for card, digital
tokens, and payment transfer transactions. </FONT>Our <FONT STYLE="letter-spacing: -0.05pt">innovative and scalable business model
allows</FONT> for expansive white labeling, SaaS, and embedded payment solutions that will drive the digital transformation of
financial services and generate diverse revenue streams for our company.&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Effects
of the COVID-19 Pandemic</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
unprecedented and adverse effects of COVID-19, and its unpredictable duration, in the regions where we have merchants, employees
and consumers has an adverse effect on our processing volume and may in the future have a material adverse effect on our liquidity
and financial condition.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Results
of Operations</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
section includes a summary of our historical results of operations, followed by detailed comparisons of our results for (i) the
nine months ended September 30, 2020 and 2019 and (ii) the years ended December 31, 2019 and 2018. We have derived this data from
our interim and annual consolidated financial statements included elsewhere in this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Revenue and Expenses</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Revenues</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
devise our revenues by providing financial processing services to businesses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Expenses</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Cost
of Revenue.</I> Cost of revenue includes costs directly attributable to processing and other services the company provides. These
also include related costs such as residual payments to our business development partners, which are based on a percentage of
the net revenue generated from client referrals.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>General
and administrative.</I> General and administrative expenses include professional services, rent and utilities, and other operating
costs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Research
and development.</I> Research and development costs include costs of acquiring patents and other unproven technologies, contractor
fees and other costs associated with the development of the SMS short code texting platform, contract and outside services.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Interest
expense, net.</I> Our interest expense consists of interest on our outstanding indebtedness and amortization of debt issuance
costs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Key
Operating Metrics</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
evaluate our performance through key operating metrics, including:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 90%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The dollar
    volume of payments our clients process through us (payment volume); and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Period to period merchant
    payment volume attrition </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
payment volume for the years ended December 31, 2019 and 2018 was $103,389,512 and $107,566,481, respectively. This represents
a period-to-period growth rate of minus 4%. Payment volume reflects the addition of new clients and the same client payment volume
from existing clients, offset by client attrition during the period.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
merchant payment volume attrition for the years ended December 31, 2019 and 2018 was $1,409,757 (1.37%) and $2,553,953 (2.44%),
respectively. This represents a period-to-period attrition decrease of 55%.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
measure period to period merchant payment volume attrition for all clients that were processing with us for the same period in
the prior period. We exclude from our calculations the merchant payment volume from new clients added during the period. We experience
attrition in payment volume as a result of several factors, including business closures and transfers of client&rsquo;s accounts
to our competitors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have one merchant customer, American Residential Warranty Services, that represented approximately 39% of our total revenues in
the year ended December 31, 2019 and approximately 35% in the year ended December 31, 2018. The terms of our agreement with this
entity are industry standard for ACH processing for similar merchants. We do not have a long-term contract with this customer,
and the loss of their business would have a material adverse effect on our business.</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Nine
Months Ended September 30, 2020 Compared to Nine Months Ended September 30, 2019</I></B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
Nine Months Ended September 30, 2020</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Compared
to the Nine Months Ended September 30, 2019</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
<FONT STYLE="letter-spacing: -0.05pt">following </FONT>table presents our <FONT STYLE="letter-spacing: -0.05pt">historical results
</FONT>of operations <FONT STYLE="letter-spacing: -0.05pt">for the</FONT> periods indicated:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Nine Months Ended September 30</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; text-indent: -7.5pt; padding-left: 7.5pt">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">241.3</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">190.4</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 7.5pt">Cost of revenue</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">103.7</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">75.1</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20pt">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">137.6</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">115.3</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -7.5pt; padding-left: 7.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.5pt">Operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20pt">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,781.9</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">743.2</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 20pt">Research and development</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">49.2</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">62.4</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.5pt">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,831.1</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">805.6</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.5pt">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,693.5</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(690.3</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -7.5pt; padding-left: 7.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.5pt">Other expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 20pt">Forgiveness of debt</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9.0</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 20pt">Interest expense, net</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(213.9</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(217.7</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.5pt">Total other expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(204.9</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(217.7</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.5pt">Loss before income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,898.4</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(908.0</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -7.5pt; padding-left: 7.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 7.5pt">Provision for income taxes</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -7.5pt; padding-left: 7.5pt">Net Loss</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(2,898.4</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(908.0</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Revenue</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">Revenue
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">increased to $241,367 from $190,411, or 27%,
<FONT STYLE="letter-spacing: -0.05pt">for the </FONT> nine months ended September 30, <FONT STYLE="letter-spacing: 0.05pt">2020
</FONT><FONT STYLE="letter-spacing: -0.05pt">from </FONT>the nine months ended September 30, 2019. This <FONT STYLE="letter-spacing: -0.05pt">increase
was</FONT> principally driven by <FONT STYLE="letter-spacing: -0.05pt">a decrease in processing fees assessed to the Company</FONT>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Cost
of Revenue</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">Cost
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">of <FONT STYLE="letter-spacing: -0.05pt">revenue
</FONT>increased to $103,721 <FONT STYLE="letter-spacing: -0.05pt">from</FONT> $75,099, <FONT STYLE="letter-spacing: -0.05pt">or
</FONT>38%, <FONT STYLE="letter-spacing: -0.05pt">for the nine months</FONT> ended September 30, 2020 <FONT STYLE="letter-spacing: -0.05pt">from
the nine months</FONT> ended September 30, <FONT STYLE="letter-spacing: -0.05pt">2019.</FONT> This <FONT STYLE="letter-spacing: -0.05pt">increase
was</FONT> driven primarily <FONT STYLE="letter-spacing: 0.05pt">by</FONT> increased residual payouts from increased revenue<FONT STYLE="letter-spacing: -0.05pt">.</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt"><B>General
</B></FONT><B><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">and Administrative Expenses</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">General
<FONT STYLE="letter-spacing: -0.05pt">and</FONT> administrative expenses increased to $2,781,912 from $743,210 <FONT STYLE="letter-spacing: -0.05pt">for
nine months</FONT> ended September 30, 2020 <FONT STYLE="letter-spacing: -0.05pt">from the </FONT>nine months ended September
30, 2019, the increase was <FONT STYLE="letter-spacing: -0.05pt">primarily driven</FONT> <FONT STYLE="letter-spacing: 0.05pt">by
</FONT><FONT STYLE="letter-spacing: -0.05pt">stock-based</FONT> compensation <FONT STYLE="letter-spacing: -0.05pt">due</FONT>
to <FONT STYLE="letter-spacing: -0.05pt">several significant consulting</FONT> agreements <FONT STYLE="letter-spacing: -0.05pt">for
marketing</FONT> and professional related services.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Research
and Development Expenses</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Research
and development expenses decreased to $49,250 <FONT STYLE="letter-spacing: -0.05pt">from</FONT> $62,350 <FONT STYLE="letter-spacing: -0.05pt">for
the nine months</FONT> ended September 30, <FONT STYLE="letter-spacing: -0.05pt">2020</FONT> from the <FONT STYLE="letter-spacing: -0.05pt">nine
months</FONT> ended September 30, 2019. This <FONT STYLE="letter-spacing: -0.05pt">decrease </FONT><FONT STYLE="letter-spacing: -0.1pt">was
</FONT>primarily due to <FONT STYLE="letter-spacing: -0.05pt">various insignificant factors.</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt"><B>Interest
Expense,</B></FONT><B> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">net</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">Interest
expense, net </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">decreased to <FONT STYLE="letter-spacing: -0.05pt">$213,890
from</FONT> $217,722 <FONT STYLE="letter-spacing: -0.05pt">for the nine months</FONT> ended September 30, 2020 <FONT STYLE="letter-spacing: -0.05pt">from
the nine months</FONT> ended September 30, 2019. The decrease was primarily due to various insignificant factors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Year
Ended December 31, 2019 Compared to Year Ended December 31, 2018</I></B></FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Years
Ended December 31, 2019 </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Compared
to Years Ended December 31, 2018</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table presents our historical results of operations for the periods indicated:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">Year ended December 31</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">Change</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid">(in thousands)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Amount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; text-indent: -7.5pt; padding-left: 7.75pt">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">256.1</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">253.8</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">2.3</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">1</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 7.75pt">Cost of revenue</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">101.6</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">108.4</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(6.8</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(6</TD><TD STYLE="padding-bottom: 1pt; text-align: left">%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">154.5</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">145.4</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.1</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,020.9</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,912.2</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(891.3</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(47</TD><TD STYLE="text-align: left">%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 20.25pt">Research and development</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">82.0</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">279.7</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">197.7</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(71</TD><TD STYLE="padding-bottom: 1pt; text-align: left">%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,102.9</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,191.9</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,089.0</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(50</TD><TD STYLE="text-align: left">%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Income (loss) from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(948.4</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,046.5</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,098.1</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(54</TD><TD STYLE="text-align: left">%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Other expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Other Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">106.0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">106.0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 20.25pt">Interest expense, net</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">288.8</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">464.6</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(175.8</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(38</TD><TD STYLE="padding-bottom: 1pt; text-align: left">%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Total other expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">394.8</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">464.6</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(69.8</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15</TD><TD STYLE="text-align: left">%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Income (loss) before income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,343.2</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,511.1</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,167.9</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(47</TD><TD STYLE="text-align: left">%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Provision for income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 7.75pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -7.5pt; padding-left: 7.75pt">Net income (loss)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,343.2</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(2,511.1</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,167.9</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(47</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">%)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Revenue</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenue
increased to $256,138 from $253,785, or 1%, for the year ended December 31, 2019 from the year ended December 31, 2018. This increase
was principally driven by various insignificant factors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Cost
of Revenue </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cost
of revenue decreased to $101,638 from $108,389, or 6%, for the year ended December 31, 2019 from the year ended December 31, 2018.
This decrease was driven primarily by a significant decrease in merchant fees due to a change in our primary processing partner.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>General
and Administrative Expenses</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">General
and administrative expenses decreased to $1,020,869 from $1,912,218, or 47%, for the year ended December 31, 2019 from the year
ended December 31, 2018. This decrease was primarily driven by elimination of some one-time stock compensation expense due to
the expiration of a significant consulting agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Research
and Development Expenses</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Research
and development expenses decreased to $82,057 from $279,685, or 71%, for the year ended December 31, 2019 from the year ended
December 31, 2018. This decrease was primarily due to the decrease in development costs resulting from service agreements related
to the development of our software platforms.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Interest
Expense, net</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interest
expense, net decreased to $288,784 from $464,616, or 38%, for the year ended December 31, 2019 from the year ended December 31,
2018. This decrease was primarily driven by the elimination of one-time interest charges for the amortization of the debt discount
on new related party notes payable and refinancing charges on other notes payable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Liquidity
and Capital Resources</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Nine
Months Ended September 30, 2020 Compared to Nine Months Ended September 30, 2019</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Cash
Flows</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
<FONT STYLE="letter-spacing: -0.05pt">following</FONT> table presents a summary of cash <FONT STYLE="letter-spacing: -0.05pt">flows
</FONT>from <FONT STYLE="letter-spacing: -0.05pt">operating, investing and financing</FONT> activities <FONT STYLE="letter-spacing: -0.05pt">for
the following</FONT> comparative periods.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Nine Months Ended September 30,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; text-align: left">Net cash used in operating activities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(303,235</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(593,236</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net cash provided by (used in) investing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">23,411</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(50,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net cash provided by financing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">301,981</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">735,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Cash
Flow from Operating Activities</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
<FONT STYLE="letter-spacing: -0.05pt">cash used</FONT> <FONT STYLE="letter-spacing: 0.05pt">in</FONT> operating activities decreased
by $290,001 <FONT STYLE="letter-spacing: -0.05pt">for the nine months</FONT> ended September 30, 2020 <FONT STYLE="letter-spacing: -0.05pt">from
the</FONT> nine months ended September 30, <FONT STYLE="letter-spacing: -0.05pt">2019.</FONT> This <FONT STYLE="letter-spacing: -0.05pt">increase
was</FONT> principally <FONT STYLE="letter-spacing: -0.05pt">driven</FONT> <FONT STYLE="letter-spacing: 0.05pt">an increase in
accounts payable</FONT><FONT STYLE="letter-spacing: -0.05pt">.</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Cash
Flow from Investing Activities</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
<FONT STYLE="letter-spacing: -0.05pt">cash</FONT> provided <FONT STYLE="letter-spacing: 0.05pt">by</FONT> investing activities
increased <FONT STYLE="letter-spacing: 0.05pt">by</FONT> $73,411 <FONT STYLE="letter-spacing: -0.05pt">for the nine months</FONT>
ended September 30, 2020 <FONT STYLE="letter-spacing: -0.05pt">from</FONT> the nine <FONT STYLE="letter-spacing: -0.05pt">months
</FONT>ended September 30, 2019. This <FONT STYLE="letter-spacing: -0.05pt">increase was</FONT> principally <FONT STYLE="letter-spacing: -0.05pt">driven
</FONT><FONT STYLE="letter-spacing: 0.05pt">by</FONT> a <FONT STYLE="letter-spacing: -0.05pt">refund</FONT> of a deposit.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Cash
Flow from Financing Activities</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
<FONT STYLE="letter-spacing: -0.05pt">cash</FONT> provided <FONT STYLE="letter-spacing: 0.05pt">by</FONT> <FONT STYLE="letter-spacing: -0.05pt">financing
</FONT>activities decreased <FONT STYLE="letter-spacing: 0.05pt">by</FONT> $433,519 <FONT STYLE="letter-spacing: -0.05pt">for
the nine months</FONT> ended September 30, 2020 <FONT STYLE="letter-spacing: -0.05pt">from nine</FONT> the <FONT STYLE="letter-spacing: -0.05pt">months
</FONT>ended September 30, <FONT STYLE="letter-spacing: -0.05pt">2019.</FONT> This decrease <FONT STYLE="letter-spacing: -0.05pt">was
</FONT>principally <FONT STYLE="letter-spacing: -0.05pt">driven</FONT> by decreased proceeds from <FONT STYLE="letter-spacing: -0.05pt">the
sale</FONT> of common <FONT STYLE="letter-spacing: -0.05pt">stock and</FONT> decreased proceeds from the sale of repurchase options.</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Year
Ended December 31, 2019 Compared to Year Ended December 31, 2018</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Cash
Flows </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table presents a summary of cash flows from operating, investing and financing activities for the following comparative
periods.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Year
Ended December 31, 2019 and 2018</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">Year Ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2018</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="7">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; text-align: left; padding-left: 0.25pt">Net cash used in operating activities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(760,544</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(192,801</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25pt">Net cash used in investing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(25,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(5,948</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.25pt">Net cash provided by financing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">808,319</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">173,847</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Cash
Flow from Operating Activities</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
cash used in operating activities increased by $567,743 for the year ended December 31, 2019 from the year ended December 31,
2018. This increase was principally driven by a decrease in equity-based compensation from a significant consulting agreement
in addition to the increase in consulting and professional fees associated with our growth objectives.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Cash
Flow from Investing Activities</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
cash used in investing activities increased by $19,052 for the year ended December 31, 2019 from the year ended December 31, 2018.
This increase was principally driven by a deposit placed in escrow, which was later agreed to be refunded.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Cash
Flow from Financing Activities</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
cash provided by financing activities increased by $634,472 for the year ended December 31, 2019 from the year ended December
31, 2018. This increase was principally driven by increased proceeds from assigning our rights to stock repurchase option agreements
to a third parties.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Critical
Accounting Policies</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have
been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and judgments
that affect the reported amounts of assets, liabilities, revenues and expenses. On an ongoing basis, we evaluate our estimates
including those related to revenue recognition, goodwill and intangible assets, derivative financial instruments, and equity-based
compensation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable
under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Critical
accounting policies are those that we consider the most critical to understanding our financial condition and results of operations.
The accounting policies we believe to be most critical to understanding our financial condition and results of operations are
discussed below. As of September 30, 2020, there have been no significant changes to our critical accounting estimates, except
as described in Note 2 to our consolidated financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Off-Balance
Sheet Arrangements</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
do not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured
finance or special purpose entities, that would have been established to facilitate off-balance sheet arrangements (as that term
is defined in Item 303(a)(4)(ii) of Regulation S-K) or other contractually narrow or limited purposes. As such, we are not exposed
to any financing, liquidity, market or credit risk that could arise if we had engaged in those types of relationships. We enter
into guarantees in the ordinary course of business related to the guarantee of our own performance.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="business"></A>BUSINESS</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Overview</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
intend to simplify and streamline <FONT STYLE="letter-spacing: -0.05pt">digital financial services for corporations, SMBs and
consumers through innovative payment</FONT> processing and digital banking technologies that complement <FONT STYLE="letter-spacing: -0.05pt">our
</FONT>core <FONT STYLE="letter-spacing: -0.05pt">merchant</FONT> services capabilities. <FONT STYLE="letter-spacing: -0.05pt">Our
company&rsquo;s merchant</FONT> services provide <FONT STYLE="letter-spacing: -0.05pt">financial</FONT> processing <FONT STYLE="letter-spacing: -0.05pt">for
businesses</FONT> to accept cashless and/or contactless <FONT STYLE="letter-spacing: -0.05pt">payments, such</FONT> as credit
cards, <FONT STYLE="letter-spacing: -0.05pt">ACH, wireless</FONT> payments, and <FONT STYLE="letter-spacing: -0.05pt">more. Our
</FONT>patented, exclusively licensed and/or proprietary merchant services <FONT STYLE="letter-spacing: -0.05pt">software offers
or will offer integrated solutions for frictionless digital and mobile payment acceptance; we are supplementing these capabilities
with licensed software that solves for multi-use case, multi-channel, API-driven, account-based issuer processing for card, digital
tokens, and payment transfer transactions. </FONT>Our <FONT STYLE="letter-spacing: -0.05pt">innovative and scalable business model
allows</FONT> for expansive white labeling, SaaS, and embedded payment solutions that will drive the digital transformation of
financial services and generate diverse revenue streams for our company.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe the financial services industry is going through a period of intensive change driven by the advancement of technology,
the adaption to societal changes and the rapid rise of contactless transactions. End-users are beginning to expect ease of use
and an enhanced user experience in all of their daily financial transactions. In this rapidly evolving digital marketplace merchants
have broad and frequently changing requirements for payment processing. Our flexible and configurable technologies enable us to
provide solutions that meet each merchant&rsquo;s current needs while providing scope to solve for their future development plans
and opportunities. By taking a holistic view of all aspects of our clients&rsquo; business, including risk, volume, user experience,
integration capabilities and technical needs, we are able to create optimal and extensible processing solutions. Merchants are
now concerned with achieving added-value and no longer make payment partner decisions solely on lowest processing prices. While
we are able to offer extremely competitive pricing, we believe the value we create for merchants, SMEs and regional banking institutions
through our technology, services and consultative approach will create true differentiation from our competitors. As we shift
our focus technological advancement, we will continue to aggressively seek new merchants.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Through exclusive
licensing and partnership agreements, we believe we will become leaders in the processing technology industry by supporting digital,
tokenized, multi-channel, embedded API-driven transactions. We will augment this position through the integration of our merchant
services and secure text payment solution with extensive digital account-based and multi-channel issuer payment processing capabilities.
This will enable us to provide our merchant customers an end-to-end payment acceptance and digital banking solution and will power
straight-through processing and embedded payments opportunities in the B2B space.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
key to the company&rsquo;s success and market penetration relies on the continued development of enterprise-grade, patent protected
<FONT STYLE="letter-spacing: -0.05pt">software </FONT>f<FONT STYLE="letter-spacing: -0.05pt">or</FONT> SMS text payments via a
mobile device. Our patented technology <FONT STYLE="letter-spacing: -0.05pt">manages</FONT> text <FONT STYLE="letter-spacing: -0.05pt">messaging
for processing payments notification,</FONT> response, <FONT STYLE="letter-spacing: -0.05pt">authentication, marketing, advertising,
</FONT>information queries <FONT STYLE="letter-spacing: -0.05pt">and</FONT> reports. <FONT STYLE="letter-spacing: -0.05pt">Our
</FONT>software platforms will extend <FONT STYLE="letter-spacing: -0.05pt">merchants&rsquo;</FONT> marketplace <FONT STYLE="letter-spacing: -0.05pt">creating
new</FONT> avenues and channels to request and <FONT STYLE="letter-spacing: -0.05pt">receive frictionless, digital payments and
engage end-users utilizing a familiar, convenient and widely adopted technology.</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">Once
an account is established through our multi-currency digital wallet, internet connectivity or a specific application are not required
to process payments between merchants and end-users. These features will be particularly beneficial for the unbanked and underbanked
individuals in developing and emerging markets where access to internet on a mobile device and modern banking institutions may
not be readily available. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe <FONT STYLE="letter-spacing: -0.05pt">our</FONT> technologies <FONT STYLE="letter-spacing: -0.05pt">will greatly</FONT>
increase the adoption of mobile payments and alternate banking solutions in a sector that appears to have little alternative but
to adapt and migrate towards new technologies that facilitate convenient and safe contactless payments. <FONT STYLE="letter-spacing: 0.05pt">To
</FONT>survive and <FONT STYLE="letter-spacing: -0.05pt">succeed in this environment, businesses may </FONT>need to adopt <FONT STYLE="letter-spacing: -0.05pt">new
technologies</FONT> to engage, communicate and process payments <FONT STYLE="letter-spacing: -0.05pt">with </FONT>their <FONT STYLE="letter-spacing: -0.05pt">customers.
</FONT>We believe that by embracing technological advancement in the payment and banking industries we are aligned in the <FONT STYLE="letter-spacing: -0.05pt">precise
direction that our current and prospective customer base is trending towards, and we intend for </FONT>our current and future
products to be at the forefront in providing solutions that enable and facilitate these anticipated changes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">We
are also expanding upon our financial technology foundation into the telehealth and remote patient monitoring sectors in response
to cultural shifts and new healthcare demands of society. We have identified a need for the integration of payment acceptance
technologies into the burgeoning telehealth sector. We believe this sector&rsquo;s focus is on providing health-related telecommunications
but how fees and payments for these services are requested and accepted is being overlooked. We intend to fill this identified
shortfall by developing technologies and payment-related services to aid companies providing telehealth solutions. Through a strategic
partnership, help bring to market personal emergency response and remote patient monitoring services and equipment help ensure
the safety of the elderly and injured or sick patients while providing peace of mind to family members, care givers and retirement
communities. These solutions increase patient&rsquo;s access to comprehensive care options and allow medical teams to intervene
in a timely manner to avoid more serious health concerns. By providing financial and administrative services we will have the
opportunity to receive substantial revenue share from recurring revenue billed through Medicare with the potential for substantial
growth and substantial profit margins.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are an OTC Markets
traded corporation headquartered in Carlsbad, CA. Our stock trades under the symbol &ldquo;APCX.&rdquo; We were founded in
1998 as Health Express USA, Inc. Our business went through name changes in 2005 (CSI Business, Inc.), 2006 (Natural Nutrition
Inc.) and 2009 (AppTech Corp.) In 2013, we merged with Transcendent One, Inc., whereby Transcendent One, Inc. and its management
took controlling ownership of the Company. From this point forward, we have operated as a merchant services provider, continuing
the business conducted by Transcendent One, Inc. In 2017, we acquired certain assets from GlobalTel Media, Inc., or GTM, which
included patented, enterprise-grade software for advanced text messaging. In addition to the software and associated databases,
the acquisition included four patents and additional intellectual property for mobile payments and advanced MFA security protocols.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Industry
Background</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The financial technology
and transaction processing industries are an integral part of today&rsquo;s worldwide financial structure. The electronic payments
industry is massive, with growth fueled by powerful long-term trends that continue to increase the acceptance and use of electronic
payments compared to paper-based payments. According to The Nilson Report, purchase volume on credit, debit and prepaid cards
in the United States was approximately $6.1 trillion in 2018 and is estimated to reach nearly $10.4 trillion by 2027, a compound
annual growth rate, or CAGR, of 6.1%.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
payment processing industry continues to evolve rapidly, based on the application of new technology and changing customer needs.
Changes in technology allow for new payment methods, such as mobile payments, and merchants increasingly need new methods of interacting
with their customers to ensure loyalty and repeat business. As consumers continue to integrate mobile devices into their lives,
there will be increased demand to conduct business on these devices. According to Businesswire, the global mobile payment market
was valued at $1449.56 billion in 2020 and is expected to reach over $5399.6 billion in 2026 with growth at a CAGR of 24.5% over
the forecast period (2021 - 2026).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">GSMA
Intelligence reported in 2019 that globally, there are more than 9.2 billion mobile connections and 5.1 billion mobile subscribers
with text messaging capabilities. Statista asserted that just over 3.9 billion of these devices have access to mobile internet.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">According
to 2019 PEW Research Report, even though consumers remain somewhat skeptical of newer financial technologies growth in the mobile
payment sector persists. Consumers&rsquo; age and the technologies&rsquo; reliance on traditional financial systems may explain
lack of mobile payment adoption. As businesses adopt mobile payment solutions in response to user demand, they need to better
educate their customers on the security of mobile payments. According to creditcards.com, consumers need to recognize that mobile
payment methods offered by major providers are more secure than physical cards and cash because mobile wallets use methods such
as encryption and tokenization to mask payment card account numbers as you enter them and when you pay. Nonetheless, consumer
satisfaction is high with mobile payments. In fact, Accenture reports that most mobile payments users are satisfied&mdash;76%
are happy using mobile banking apps to make payments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Telehealth uses
information and communication technology to overcome distance barriers and improve access to healthcare. According to Fortune
Business Insights, the global telehealth market size was valued at $61.40 billion in 2019 and is projected to reach $559.52 billion
by 2027, exhibiting a CAGR of 25.2% during the forecast period. Reports and Data reported the remote patient monitoring market
is forecast to reach $2.14 billion by 2027 with a CAGR of 14.1%.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Competitive Strengths</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe our
adaptable technology and holistic product offering differentiate ourselves from our competitors. Our products, many of which have
the ability to be launched in a matter of months, help to eliminate much of our sector&rsquo;s reliance on legacy payment rails
and financial systems. By not being restricted by antiquated foundational technology the applicability and frictionless of our
products will have the ability to have an immediate impact on digital financial services industry. Further, while technologically
advanced, the products will be comfortable to end-users allowing for a seamless adoption.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The patent protection
to some of our products is also not commonplace within the fintech industry. This protection prevents competitors from trying
to replicate our products in order to carve away at our anticipated market share. Therefore, backing our text payment and lead
generation products with patents strengthens the viability of such products by limiting direct competition.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our patent protected
text payment system&rsquo;s anticipated capabilities also set us apart. By creating a product that permits mobile payments without
the need to for a data plan, internet or an application, we will have the unique ability to target unbanked and underbanked individuals
primarily in developing or emerging markets. Integrating consumers that are not traditionally included in the payment space will
allow us to have a larger potential market than many of our competitors.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The features and
capabilities of products we intend to bring to market allow for agile transaction processing which supports API-driven, multi-channel
and secure products. The ability for such products to be embedded into other technologies while supporting multi-currency transactions
set our anticipated suite of products apart from established fintech companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Our Growth Strategy &nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We intend to grow
through levering our existing IP, partnering with strategic partners that have unique technology that complements the core businesses
of the company as well as through selective acquisition. From traditional merchant accounts to customizable inbound and outbound
payment solutions, we intend to modernize and enhance the payment processing and digital banking capabilities for businesses throughout
the world. Our business objective is to generate revenues based on licensing fees, synergistic product lines, processing fees,
SaaS distribution and continual advancement of our IP portfolio.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our target market
is SMBs seeking to broaden their distribution through the addition of digital payment channels, SMBs looking to create competitive
advantage by advancing their integration and streamlining of their payment processing services and financial institutions looking
to enhance their customer&rsquo;s user experience through the development of innovative and user centric multi-channel, multi-currency,
digital financial products. We intend to utilize a white-label SaaS delivery model, which will allow for service fees, revenue
sharing and back-end processing fees. Further, by offering SMBs a full array of lead generation services, merchant services processing
and digital banking technologies, we will allow them to better interact with their customers and provide additional, dynamic means
of processing both inbound and outbound payments. SMBs generally lack the resources of large enterprises to invest heavily in
technology. As a result, they are more dependent on service providers, such as us, to handle critical functions including payment
acceptance and other support services and are likely to be early adopters of new services that will further increase their efficiency
and drive growth.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Businesses&rsquo;
financial technology needs are increasingly complex. As electronic and mobile commerce continues to grow, businesses have no alternative
but to use technology to better reach their customers. We believe by delivering novel, adaptive products meet their financial
services needs it will result in rapid market penetration for our anticipated products launches.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While leveraging
new technology is vital to our growth plan, it is equally important that technology is relevant and seamlessly fits into and benefits
our end-user&rsquo;s everyday life. Consumers are sometimes reluctant to alter their typical routines, especially when it relates
to financial services. The anticipated launch of our text payment system and broader digital banking and payments solutions will
meet both these needs. We will offer payment acceptance technologies that do not rely on legacy payment rails while allowing the
end-user to transact frictionless and secure payments with the comfort of text messaging. Once properly developed and rolled out,
we anticipate rapid adoption.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
seek to grow our business by pursuing the following strategies:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><P STYLE="margin: 0pt 0; font: 10pt/107% Times New Roman, Times, Serif">Increasing
                                         our customer base by offering unique, and compelling patent protected technology solutions;</P></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Driving
                                         growth in our merchant services business through new and flexible technologies, including
                                         our secure text payment system, that will enable our customers to adapt to a rapidly
                                         changing marketplace;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rolling-out
                                         our <FONT STYLE="letter-spacing: -0.05pt">API-driven, account-based, issuer processing
                                         solution for card, digital token, and payment transfer transactions that will enable
                                         us to target multi-currency and multi-channel digital banking and embedded B2B payment
                                         opportunities</FONT>;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Engaging
                                         end-users via lead generation and text marketing services to enable businesses to better
                                         communicate with their customers and integrate our full suite of products;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Maintaining
                                         technological leadership by continuing to innovate and improve our technology;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuing
                                         strategic acquisitions or partnerships to complement and bolster our suite of fintech
                                         products;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Creating
                                         cross-selling synergies through white labeling or SaaS distribution enabling us to provide
                                         a holistic suite of products and services to merchants, banking institutions and SMEs;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Utilizing
                                         a scalable business model to eliminate certain barriers to rapid growth; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expanding
                                         into the telehealth sector by offering advanced remote patient monitoring technologies.
                                         </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">Vital to our future
success is the market penetration of our current and future products. Our market penetration strategy includes four elements:
(1) royalty-free licenses; (2) engaging close industry contacts; (3) utilizing potential market share shifting IP; and (4) illustrating
the need for our fintech products in fintech amongst our target industry segments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; margin: 0pt; font: 10pt/107% Times New Roman, Times, Serif; text-indent: 0.5in">At the outset,
to gain a foothold, we plan to offer royalty-free licenses for our text messaging and complimentary payment solutions in exchange
for the processing the related payments. By incentivizing potential clients with free access to advanced, patented technology,
we will give clients the ability to bolster and enhance their fintech capabilities, while creating revenue streams for our full
suite of products.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">With
years of fintech experience, management believes we can leverage our industry contacts and past clients in order to gain valuable
contracts with businesses. Engaging individuals with the ability to integrate our products may prove invaluable. Further, through
our channel partnerships, we have an expansive network of potential clients to integrate our technology into their payment processing
needs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management
believes there are substantial opportunities in emerging and developing markets for our anticipated products. Our mobile payment
and digital banking solutions offer innovative avenues to unbanked and underbanked communities to transact and provide remittances.
Further, since internet connectivity is not required for our text payment solution, individuals with limited internet access will
still be able transact. These two factors have the ability to open our products to markets with immense growth potential.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Companies
are regularly attempting to identify ways to stay in contact with their customers and create new payment channels. Our products
do precisely this. When customers sign up for our secure text payment system, clients will have the ability to integrate a text
messaging waiver into the registration process. This allows for clients to have fresh, opted-in contact information which can
be paired with our text messaging services for notification, response, authentication, marketing, advertising, information queries
and reports. It is our intent to market these identifiable benefits to companies in order to illustrate the advantages of partnering
with us. Specific industries that could utilize our secure text payment system are pharmacies, collection agencies, charitable
and religious organizations, utility companies, property management companies and any business that relies upon recurring business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our partnership
with NEC Payments&rsquo; internationally experienced and proven team of subject matter experts will enable our management to focus
resources on delivering growth using the strategies described above with full confidence that the business is being powered by
innovative technology IP running on robust, secure and scalable highly-available cloud infrastructure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Management
believes our partnership with Silver Alert Services, LLC is the initial foothold for our expansion in the telehealth sector. Our
strategic partnership providing financial services in support of their remote patient monitoring devices has the opportunity
to create substantial revenue. However, with the emergence of new telehealth platforms and the rapid shift towards e-visits,
many of which require private payer model, we believe our payment acceptance technology, specifically our embedded
capabilities will have widespread application in the sector.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Products and Services</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Merchant
Services</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
core historical business is merchant transaction services. We create revenue by processing payments for credit and debit cards
via POS (point of sale) equipment, e-commerce gateways, periodic ACH (automatic clearing house) payments and gift &amp; loyalty
programs. We currently support over 100 merchants representing dozens of market verticals in managing their financial transactions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
merchant has unique requirements for payment processing. As a result, we have a variety of processing partners to meet each merchant&rsquo;s
requirements. In addition to these needs, we take into consideration certain aspects of each business in choosing the optimal
processing partner including risk, volume, customer service, integration capabilities, product features and profitability.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify">Our processing partners
include Total Systems Services (&ldquo;TSYS&rdquo;)/Global Payments., JetPay an NCR Payment Solutions Company, Harbortouch Payments
a Shift4 Company, Cynergy Data/Priority Payments Systems Group, Novera/WorldPay and High Risk Holdings, LLC, with each providing
products and services that meet each of our merchants&rsquo; needs. Currently, our partners manage our backend payment processing
needs in addition to managing risk and compliance on our behalf. Through the implementation of our proprietary payment processing
protocols as we grow our customer base, we will manage the risk and compliance ourselves, which will increase our margins on each
transaction processed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Using
our proprietary software, together with our partnerships, we are able to offer our merchants efficient online onboarding through
our website development and hosting services, payment integration APIs including data encryption, payment tokenization and issuing
banking authorization, and the creation of white-label, merchant-specific mobile applications. As we move forward with our secure
text payment system and other products, we intend to enter new partnership agreements to align with our plans to integrate advanced
processing capabilities, permitting the global expansion of our secure text payments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Text
Payment System</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are developing a comprehensive and broad mobile payment platform which, once an account is established, relies solely on SMS text
messaging. By integrating our payment processing with text messaging and a digital wallet, we intend to offer the mobile payment
industry&rsquo;s first and only patent protected text payment system. The integration of direct, reliable, instant, and familiar
text messaging with secure payments is how we believe we bridge the gap between fintech and mobile wireless systems.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Anticipated
features of our secure mobile payments include:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 90%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Utilization
    of standard SMS (Short Message Services) text messaging;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A payment platform
    that does not require mobile internet, a data plan or a mobile application; </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A secure text payment
    protocol that can be used on all traditional and smart cellular phones on all major global carriers without any additions
    or modifications to the mobile user wireless plan; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Simple authentication
    of the end-user. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
secure text payment system will a simple, three-step SMS text process utilizing a digital wallet, necessary to verify payee and
payor identification, account numbers and fund availability for preregistered users. Payment may be engaged by the mobile user
messaging a set of keywords to an established short code managed by us, or a merchant can contact an opted-in mobile user inquiring
whether they desire to make a payment. The registered user will authorize the amount and company in which they intend to remit
payment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Within the text payment
platform there are three distinct services that are used. These include: (1) our patented text messaging platform, (2) a digital
wallet and (3) payment processing. Depending on the needs of the merchant, we may provide all three services or only license our
text messaging platform to a business that utilizes their own/third-party digital wallet and alternate payment processors. Through
licensing agreements, we possess powerful application programming interfaces (APIs) to allow licensees to develop their own, white-labeled
software applications. This flexible approach allows for an opportunity for greater market penetration.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
text payment system will be used by businesses seeking to maintain contact with customers and find new ways to receive payments.
A utility company could contact a customer via text message informing them their bill is due, then ask if they would like to pay
their bill by a few simple text messages, a church could contact their parishioners asking to contribute their weekly tithe companies
will create simplistic ways to update, inform and process transactions with brand loyalists.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
text payment system is still in development. Continued development including integration, testing and certification are still
needed in order to be marketable. Management believes the text payment system will be launched in third quarter of 2021.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe this simple payment process has widespread application and adoption by mobile users because it utilizes a technology many
end users are comfortable with and use daily. The process is quick and user-friendly allowing businesses to simply expand their
payment receiving capabilities. Management believes no other product exists that provides verification of accounts and funds,
authentication of user identity, and the authorization of payment processing in the same fashion as our anticipated product.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is a visual depiction of the text payment system:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><IMG SRC="image_002.jpg" ALT=""></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Lead
Generation</I>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
lead generation industry has relied on thousands of &ldquo;cold calls&rdquo; that were rarely answered. According to the Mobile
Marketing Association, the only wireless technology that is opened 98% of the time is SMS text message. As a supplement to our
merchant services business, we offer a patent protected SMS text messaging lead generation service for advertising, marketing
and alerting our merchants&rsquo; customers directly.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Using
the merchant&rsquo;s own opted-in mobile number database, our lead generation service can regularly offer the merchants&rsquo;
customers with the latest in the merchant&rsquo;s products and services, promotions, discounts, appointment scheduling as well
as payment reminders, which can then be purchased via our text payments solution should merchants choose to utilize this service.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Soliciting
consumers requires added incentive and, as a solution, we plan on creating a text rewards program; by partnering with national
brands, we intend to offer cash awards redeemable where the merchants&rsquo; customers shop, eat and are entertained. Management
believes this will increase our merchant customers&rsquo; revenues and increase our customer base.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our lead generation
platform utilizes our patented text messaging capabilities to deliver text marketing services. Further, merchants and business
will able to utilize data captured through the transaction which may be offered back to the merchant to leverage marketing trends.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By
offering merchants our lead generation services, it provides an opportunity for cross-selling our text payment system. For example,
a pharmacy using our services to inform their consumer that their prescription is filled can then send a follow-up text asking
if the consumer is interested in paying for the prescription via our text payment. Management believes this cross-selling synergy
has the ability to increase revenues for all the services we offer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
web-based advanced text messaging for marketing, advertising, information queries and alert notifications has extensive applications
across numerous industries. Our past, present, and future clients will have direct access to their end user customers offering
them targeted information and new services. Just as important, our technology is scalable, easily allowing us to meet the needs
of our growing customer base.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is a visual representation of our lead generation system:</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT><IMG SRC="image_003.jpg" ALT=""></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: center; color: Red"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Intellectual Property</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
intellectual property is an important component to our business. Our strategy is to continue to build on our existing patent base
and further develop additional patents and intellectual property as we grow our business domestically and internationally. Our
management believes developing patent-based software products, integrating new technologies and creating intellectual property
will have significantly contributed to our performance.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have incorporated four USPTO patents into our operational, enterprise-grade text messaging platform for SMS marketing, advertising
and sales. By integrating our SMS technology with our MFA payment system, we will offer secure text payments. In addition to secure
text payments, our MFA allows users to authenticate and validate in order to access private data and complete online transactions
and inquiries. Our proprietary text messaging capabilities also allow users to send and receive a text message from a short code
and initiate two-way chat from a mobile to a computer using only text-messaging.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Red"><B><IMG SRC="image_004.jpg" ALT=""></B></FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Red"><B><IMG SRC="image_005.jpg" ALT=""></B></FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Red"><B><IMG SRC="image_006.jpg" ALT=""></B></FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Red"><B><IMG SRC="image_007.jpg" ALT=""></B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 23%; padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Mobile-to-Mobile
    Payment System and Method</B></FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 27%; padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Computer-to-Mobile
    Two-Way Chat System and Method</B></FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24%; padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>System
    and Method for Delivering Web Content to a Mobile Device</B></FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 23%; padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>System
    and Method for Delivering Web Content to a Mobile Device</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SMS
    chat on a computer short or long codes, chat on circuit &amp; packet switch networks, chat on paging channels.</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Receiving,
    displaying, linking web content via URL from application delivered via SMS short code to at least one mobile.</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Receiving,
    displaying, linking web content via URL from application delivered via SMS short code to at least one mobile.</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Embedding
    of a URL in a text message from a pop- up screen.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expiration
    Date:</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expiration
    Date:</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expiration
    Date:</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expiration
    Date:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">11-12-2029</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">11-14-2030</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">09-28-2024</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">02-26-2027</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Patent
Number 8,369,828 is at the core of our Secure Text Payment System. The patent enables a mobile user to initiate a request for
payment to a payee via SMS text message. Patent Number 8,315,184 utilizes short and/or long codes to send and receive text messages
from an application to a mobile device. Patent Number 8,572,166 embeds a URL in a text message sent from an application to a mobile
device. These patents comprise the components of our Secure Text Payment System. Patent Number 8,073,895 provides us another capability
of delivering web content to a mobile device.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
currently have one additional patent pending. We anticipate seeking additional patents, including derivative patents, as we continue
to innovate to better meet our customer&rsquo;s needs. In addition to incorporating our intellectual property into our offerings,
we will license all or some of our technology to third parties to increase our revenue and speed market acceptance of our products
and services.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Employees</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of the date of this prospectus, we have 9 full-time employees. In addition to our employees, we utilize various consultants and
contractors for other services on an as-needed basis.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Properties</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
headquarters is located at 5876 Owens Avenue, Suite 100, Carlsbad, Ca 92008, consisting of approximately 3000 square feet of office
space. Our lease on this facility expires in February 2025. On January 22, 2020, we also entered a purchase option agreement for
the property in which we currently reside. We anticipate that following the expiration of the lease, we will be able to lease
or purchase additional or alternative space at commercially reasonable terms.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Legal
Proceedings</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In November 2017,
two shareholders of AppTech, one who previously filed a 2014 lawsuit in the State of Washington, which was dismissed, filed another
lawsuit against us in the State of California, claiming the same accusations as in previously dismissed lawsuit. The lawsuit has
been transferred to the United States District Court for the Southern District of California. We filed an answer, affirmative
defenses and counter claims. Management believes that the Plaintiff misrepresented and mislead us during the merger between ourselves
and Transcendent One, Inc. The court has encouraged the parties to settle. Even though the Company believes the lawsuit is without
merit and will vigorously defend, the Company has made several offers to settle. On December 19, 2019, the Company entered into
a settlement and release agreement. The Company has recorded the liability as of December 31, 2019 for the total obligation of
$240,000 to be paid out over three years beginning February 15, 2020. On January 24, 2021, the parties entered a stipulation modifying
the repayment schedule of the settlement. A payment was due February 15, 2021 which has not been paid to date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In July of 2020,
a previous business associate filed a lawsuit in the State of California alleging a number of causes of action relating to a memorandum
of understanding (&ldquo;MOU&rdquo;) between the parties and its associated circumstances in 2016. Service of process did not
occur until January 8, 2021. Management believes, due to explicit language in the MOU, that the agreement was non-binding. Further,
management believes the statute of limitations expired. We intend to file an answer, affirmative defenses and counter claims prior
to the February 17, 2021 deadline.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="management"></A>MANAGEMENT</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth certain information as of the date of this prospectus about our executive officers and members of our
Board.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Age</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Position</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: left; width: 36%; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Luke D'Angelo</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">52</FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 48%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chairman of the Board;<BR>
    Chief Executive Officer;<BR>
    Chief Investment Officer</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gary Wachs</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">65</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Financial Officer; Director</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Virgilio Llapitan</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">60</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">President; Chief Operating Officer</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jeffrey Moriarty</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">36</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Secretary; VP of Corporate Development; Corporate
    Counsel</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael Gross</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">66</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Christopher Williams</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">70</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mengyin H. Liang &lsquo;Roz Huang&rsquo;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">53</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">William Huff</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">68</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael O&rsquo;Neal</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">65</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Executive
Officers</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Luke
D&rsquo;Angelo</I></B> has been the Chairman of the Board since 2013 and Chief Executive Officer since December 2019. Mr. D'Angelo
served as the Company's Chief Executive Officer from 2013 to 2017 and as Chief Investment Officer since 2017. Mr. D'Angelo has
over 25 years' experience in real estate, investment banking, venture capital and commercial operations. In 2006, he founded a
merchant services company, Transcendent One, Inc. which became an Inc. 500 fastest growing company, ranked at #105. Mr. D'Angelo's
company was the first &quot;Merchant Owned&quot; company in the United States, offering ownership in the company to customers
based on their monthly credit card processing volumes. In 2009, Mr. D'Angelo founded TransTech One, LLC a subsidiary to Transcendent
One, Inc. that had a focus in the bill payment and technology industries.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Gary
Wachs</I></B> has served as Director since 2013 and our Chief Financial Officer since 2013. Mr. Wachs is a Certified Public Accountant
who has spent his career in high-level accounting, finance and tax. Mr. Wachs served as Managing Partner of Blake and Shaffer,
a Certified Public Accounting firm, and has been a Managing Member of Blake and Wachs CPA, LTD (formerly Blake and Shaffer) since
1997. He manages corporate accounting and taxes, is experienced in PCAOB accounting and certified audits, and a variety of other
accounting, tax, and consulting areas.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Virgilio
Llapitan</I></B> has served as our President and Chief Operating Officer since December 2020. After founding his own independent
insurance agency, Mr. Llapitan transitioned into the merchant services industry in 2004, where he helped develop and market the
original ACH Payment Processing systems for online merchants as the Chairman, COO, and Director of HIMC Corporation. Over the
course of his 15 years' experience in the industry, Mr. Llapitan also served as a Universal Banker II for Ameris Bank/Bank of
America and Director of Sales/Merchant services for Transcendent One.&#9;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Jeffrey
Moriarty</I></B> has served as Corporate Counsel since June of 2019, as Secretary since November 2019 and as Vice President of
Corporate Development since January of 2020. Mr. Moriarty is instrumental in instituting and maintaining the Company&rsquo;s corporate
and business functions with a focus on corporate growth. Throughout his legal and business career, Mr. Moriarty has an array of
interdisciplinary experience, including managing his own law firm. Mr. Moriarty graduated magna cum laude of Thomas Jefferson
School of Law and received his undergraduate degree from the University of California, Santa Barbara.</FONT></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Directors</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Michael
Gross</I></B> has served as a Director since 2017 and as our Chief Executive Officer from 2017 until December 2019. Starting as
a salesman, Mr. Gross eventually became the president of Jones Boys Sales Promotions Co. in 1980, at the young age of 25, and
began working directly with the owner on company expansion and new product development. In 1997, Mr. Gross purchased Jones Boys
Sales Promotions Co, now Crossfire Marketing Group, Inc., and remains the owner. In addition to his work at Crossfire Marketing
Group, Inc and with us, Mr. Gross works with several AI companies on creating a conversation synthetic agent for lead generation
as well as development for customer service to improve efficiency. With over 40 years in the industry, Mr. Gross has worked with
more than 400 U.S. and Canadian media companies, setting up strategic campaigns and alliances.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Christopher
Williams</I></B> has served as a Director since 2016. Mr. Williams is a corporate finance attorney with a 42-year background in
corporate and entertainment finance, investment property transactions and investment banking, including service on the board of
directors and advisory boards for several private equity funds and venture capital firms. He served as Outside Corporate Counsel
for several publicly traded companies and financial institutions assisting clients in raising over $500 Million in capital and
alternate forms of financing. Mr. William's prior experience also includes 20 years active duty as a Navy JAG officer, Police
Officer, Special Criminal Investigator, San Diego Superior Court Arbitrator, San Diego Superior Court Judge Pro Tem, San Diego
Superior Court Special Settlement Conference Panel Judge, State of California Special Master, Professor, Federal Magistrate -
Military Review Officer, and San Diego County Bar Arbitrator. In addition, Mr. Williams was selected to serve as Special Advisor
to the Governor of California and acted as Bond Counsel for several municipalities in California with over $2 Billion in underwriting.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Mengyin
H. Liang &lsquo;Roz Huang&rsquo;</I></B> has served as a Director since 2020. Ms. Huang is the President of Dandelion Global,
LLC, CEO of Athena Music &amp; Wellness Academy and Chairwoman of International Music &amp; Wellness Council, an international
Non- Profit organization, Advisor to the Board of Intivahealth, Inc. and Member of Board of Directors of the Alzheimer&rsquo;s
Association Orange County. Ms. Huang&rsquo;s international business experience spans over 25 years in global investment and business
development. Her expertise includes strategic planning in areas such as sustainability, green energy, healthcare, education, licensing,
corporate governance and investor relations. Ms. Huang is a business interpreter and translator and an accomplished business journalist
and public speaker.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>William
Huff</I></B> has served as a Director since 2020. Mr. Huff is a certified public accountant and brings to the Board vital expertise
in finance and operations management. He has served on the Board of Directors of numerous companies, including as Chairman. Mr.
Huff began his career with Arthur Andersen, and Co., and has served large companies as CFO, developing necessary systems in high
growth environments. Forming his own practice 35 years ago, Mr. Huff became a marketing specialist, gaining national attention
as his accounting franchise grew to top 25 in the nation in only three years. Currently, Mr. Huff is the founder and owner of
YHWH, Inc. a tax and consulting firm.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Michael
O&rsquo;Neal</I></B> has served as a Director since 2020. Mr. O&rsquo;Neal is an innovative, analytical, strategic CEO with extensive
B2B and B2C experience executing revenue growth and business transformations for manufacturers, retailers, and distributors of
technology-based products. Most recently, as its President Mr. O&rsquo;Neal transformed Linear, a small engineering-based technology
company into Nortek Security &amp; Control, a $500M global leader in security, smart home control, health and wellness, and access
control platforms and solutions. Prior to Linear/Nortek Security Control, Mr. O&rsquo;Neal led several consumer technology development
and manufacturing companies as well as number of retailers through transformations. He is currently working with several technology
companies seeking to add new technologies and expand their market presence. He is a member of the San Diego Habitat for Humanity
Board and past member of the Board of the Consumer Technology Association. He has spoken on several security/home control industry
panels for Houlihan Lokey, Imperial Capital, and the Securing New Ground Conferences.</FONT></P>
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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Composition
of Our Board of Directors</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
board consists of 7 members. There are no contractual obligations regarding the election of our directors. Our nominating and
corporate governance committee and our board of directors may therefore consider a broad range of factors relating to the qualifications
and background of nominees. Our nominating and corporate governance committee&rsquo;s and our board of directors&rsquo; priority
in selecting board members is identification of persons who will further the interests of our stockholders through their established
record of professional accomplishment, the ability to contribute positively to the collaborative culture among board members,
knowledge of our business, understanding of the competitive landscape, professional and personal experiences, and expertise relevant
to our growth strategy. Our directors hold office until their successors have been elected and qualified or until the earlier
of their resignation or removal.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director
Independence</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
intend to apply to list our common stock on The Nasdaq Capital Market. Under the Nasdaq listing rules, independent directors must
comprise a majority of a listed company&rsquo;s board of directors within twelve months from the date of listing. In addition,
the Nasdaq listing rules require that, subject to specified exceptions, each member of a listed company&rsquo;s audit, compensation
and nominating and governance committees be independent within twelve months from the date of listing. Audit committee members
must also satisfy additional independence criteria, including those set forth in Rule&nbsp;10A-3&nbsp;under the Securities Exchange
Act of 1934, as amended, or the Exchange Act, and compensation committee members must also satisfy the independence criteria set
forth in Rule&nbsp;10C-1&nbsp;under the Exchange Act. Under Nasdaq listing rules, a director will only qualify as an &ldquo;independent
director&rdquo; if, in the opinion of that company&rsquo;s board of directors, that person does not have a relationship that would
interfere with the exercise of independent judgment in carrying out the responsibilities of a director. In order to be considered
independent for purposes of Rule&nbsp;10A-3&nbsp;under the Exchange Act, a member of an audit committee of a listed company may
not, other than in his or her capacity as a member of the audit committee, the board of directors or any other board committee:
(1)&nbsp;accept, directly or indirectly, any consulting, advisory or other compensatory fee from the listed company or any of
its subsidiaries, other than compensation for board service; or (2)&nbsp;be an affiliated person of the listed company or any
of its subsidiaries. In order to be considered independent for purposes of&nbsp;Rule&nbsp;10C-1,&nbsp;the board of directors must
consider, for each member of a compensation committee of a listed company, all factors specifically relevant to determining whether
a director has a relationship to such company which is material to that director&rsquo;s ability to be independent from management
in connection with the duties of a compensation committee member, including, but not limited to: the source of compensation of
the director, including any consulting advisory or other compensatory fee paid by such company to the director, and whether the
director is affiliated with the company or any of its subsidiaries or affiliates.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In&nbsp;February
2021, our board of directors undertook a review of the composition of our board of directors and its committees and the independence
of each director. Based upon information requested from and provided by each director concerning his background, employment and
affiliations, including family relationships, our board of directors has determined currently all of our directors, with the exception
of Mr. D&rsquo;Angelo, Mr. Wachs and Mr. Gross, qualify as an independent director for purposes of Nasdaq and SEC rules. In making
that determination, our board of directors considered the relationships that each director has with us and all other facts and
circumstances the board of directors deemed relevant in determining independence, including the potential deemed beneficial ownership
of our capital stock by each director, including&nbsp;non-employee&nbsp;directors that are affiliated with certain of our major
stockholders. Upon the completion of this offering, we expect that the composition and functioning of our board of directors and
each of our committees will comply with all applicable requirements of Nasdaq and the rules and regulations of the SEC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
intend to adopt a policy, subject to and effective upon the effectiveness of the registration statement of which this prospectus
forms a part, that outlines a process for our securityholders to send communications to the board of directors.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Staggered
Board</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
accordance with the terms of our amended and restated articles of domestication and our amended and restated bylaws amended and
restated certificate of incorporation and amended and restated bylaws, our board of directors will be divided into two staggered
classes of directors and each will be assigned to one of the two classes. At each annual meeting of the stockholders, a class
of directors are elected for a two-year term to succeed the directors of the same class whose terms are then expiring. The terms
of the directors expire upon the election and qualification of successor directors at the annual meeting of stockholders to be
held during the years 2021 for Class&nbsp;I directors and 2022 for Class&nbsp;II directors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
                                         Class&nbsp;I directors are Ms. Huang, Mr. Huff and Mr. O&rsquo;Neal; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
                                         Class&nbsp;II directors are&nbsp;Mr. D&rsquo;Angelo, Mr. Gross, Mr. Wachs, and Mr. Williams.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
amended and restated articles of domestication and amended and restated bylaws provide that the number of our directors shall
be fixed from time to time by a resolution of the majority of our board of directors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
division of our board of directors into two classes with staggered two-year terms may delay or prevent stockholder efforts to
effect a change of our management or a change in control. We expect that additional directorships resulting from an increase in
the number of directors, if any, will be distributed among the two classes so that, as nearly as possible, each class shall consist
of one half of the board of directors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Committees
of Our Board of Directors</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.4in">Our board of directors
has established an audit committee, a compensation committee, and a nominating and corporate governance committee, each of which
will operate pursuant to a charter adopted by our board of directors on October 13, 2020, October 13, 2020, and March 17, 2020,
respectively. Upon the effectiveness of the registration statement of which this prospectus is a part, the composition and functioning
of all of our committees will comply with all applicable requirements of the Sarbanes-Oxley Act of 2002, Nasdaq and SEC rules
and regulations.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.4in">Following the consummation
of this offering, the full text of our audit committee charter, compensation committee charter, and nominating and corporate governance
charter will be posted on the investor relations portion of our website at www.apptechcorp.com. We do not incorporate the
information contained on, or accessible through, our corporate website into this prospectus, and you should not consider it a
part of this prospectus.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Audit
Committee</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">William
Huff, Michael O&rsquo;Neal and Mengyin H. Liang &lsquo;Roz Huang&rsquo; serve on the audit committee, which is be chaired by William
Huff. The audit committee&rsquo;s responsibilities include:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">appointing,
                                         approving the compensation of, and assessing the independence of our independent registered
                                         public accounting firm;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">pre-approving&nbsp;auditing
                                         and permissible&nbsp;non-audit&nbsp;services, and the terms of such services, to be provided
                                         by our independent registered public accounting firm;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing
                                         the overall audit plan with our independent registered public accounting firm and members
                                         of management responsible for preparing our consolidated financial statements;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing
                                         and discussing with management and our independent registered public accounting firm
                                         our annual and quarterly financial statements and related disclosures as well as critical
                                         accounting policies and practices used by us;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">coordinating
                                         the oversight and reviewing the adequacy of our internal control over financial reporting;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">establishing
                                         policies and procedures for the receipt and retention of accounting-related complaints
                                         and concerns;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">recommending
                                         based upon the audit committee&rsquo;s review and discussions with management and our
                                         independent registered public accounting firm whether our audited financial statements
                                         shall be included in our Annual Report on Form&nbsp;10-K;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">monitoring
                                         the integrity of our consolidated financial statements and our compliance with legal
                                         and regulatory requirements as they relate to our consolidated financial statements and
                                         accounting matters;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">preparing
                                         the audit committee report required by SEC rules to be included in our annual proxy statement;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing
                                         all related person transactions for potential conflict of interest situations and approving
                                         all such transactions; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing
                                         quarterly earnings releases.</FONT></TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
services, other than&nbsp;<I>de minimis</I>&nbsp;non-audit&nbsp;services, to be provided to us by our independent registered public
accounting firm must be approved in advance by our audit committee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
members of our audit committee will meet the requirements for financial literacy under the applicable rules and regulations of
the SEC and the Nasdaq listing rules. Our board of directors has determined that William Huff&nbsp;qualifies as an &ldquo;audit
committee financial expert&rdquo; within the meaning of applicable SEC regulations. In making this determination, our board of
directors considered the nature and scope of experience that&nbsp;William Huff throughout his career as a Certified Public Account.
Our board of directors has determined that all of the directors that are members of our audit committee satisfy the relevant independence
requirements for service on the audit committee set forth in the rules of the SEC and the Nasdaq listing rules. Both our independent
registered public accounting firm and management will periodically meet privately with our audit committee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Compensation
Committee</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael
O&rsquo;Neal, William Huff and Mengyin H. Liang &lsquo;Roz Huang&rsquo; serve on the compensation committee, which is chaired
by&nbsp;Michael O&rsquo;Neal. The compensation committee&rsquo;s responsibilities include:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">annually
                                         reviewing and recommending to the board of directors the corporate goals and objectives
                                         relevant to the compensation of our Chief Executive Officer;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">evaluating
                                         the performance of our Chief Executive Officer in light of such corporate goals and objectives
                                         and based on such evaluation (i)&nbsp;recommending to the board of directors the cash
                                         compensation of our Chief Executive Officer and (ii)&nbsp;reviewing and approving grants
                                         and awards to our Chief Executive Officer under equity-based plans;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing
                                         and approving the cash compensation of our other executive officers;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing
                                         and establishing our overall management compensation, philosophy and policy;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">overseeing
                                         and administering our compensation and similar plans;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">evaluating
                                         and assessing potential and current compensation advisors in accordance with the independence
                                         standards identified in the applicable Nasdaq rules;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing
                                         and approving our policies and procedures for the grant of equity-based awards;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing
                                         and recommending to the board of directors the compensation of our directors;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">preparing
                                         our compensation committee report if and when required by SEC rules;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing
                                         and discussing annually with management our &ldquo;Compensation Discussion and Analysis,&rdquo;
                                         if and when required, to be included in our annual proxy statement; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing
                                         and approving the retention or termination of any consulting firm or outside advisor
                                         to assist in the evaluation of compensation matters.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
board of directors has determined that each member of the compensation committee is &ldquo;independent&rdquo; as defined in the
applicable Nasdaq rules. Each member of our compensation committee will be a&nbsp;non-employee&nbsp;director, as defined in Rule&nbsp;16b-3&nbsp;promulgated
under the Exchange Act, and an outside director, as defined pursuant to Section&nbsp;162(m) of the Internal Revenue Code of 1986,
as amended.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nominating
and Corporate Governance Committee</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
Williams, Mr. D&rsquo;Angelo and&nbsp;Mr. Wachs&nbsp;serve on the nominating and corporate governance committee, which is chaired
by Mr. Williams. The nominating and corporate governance committee&rsquo;s responsibilities include:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">developing
                                         and recommending to the board of directors criteria for board and committee membership;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">establishing
                                         procedures for identifying and evaluating board of director candidates, including nominees
                                         recommended by stockholders;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing
                                         the composition of the board of directors to ensure that it is composed of members containing
                                         the appropriate skills and expertise to advise us;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">identifying
                                         individuals qualified to become members of the board of directors;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">recommending
                                         to the board of directors the persons to be nominated for election as directors and to
                                         each of the board&rsquo;s committees;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">developing
                                         and recommending to the board of directors a code of business conduct and ethics and
                                         a set of corporate governance guidelines; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">overseeing
                                         the evaluation of our board of directors and management.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
board of directors may from time to time establish other committees.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Compensation
Committee Interlocks and Insider Participation</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.4in">We first maintained
a compensation committee October 13, 2020. None of the members of our compensation committee is, or has at any time during the
prior three years been, one of our officers or employees. None of our executive officers currently serves, or in the past fiscal
year has served, as a member of the board of directors or compensation committee of any entity that has one or more executive
officers serving on our board of directors or compensation committee.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Corporate
Governance</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have adopted a written code of business ethics and conduct (the &ldquo;Code of Business Conduct&rdquo;) that applies to all of
our directors, officers and employees, including our Chief Executive Officer and Chief Financial Officer. The objective of the
Code of Conduct is to provide guidelines for maintaining our integrity, reputation, honesty, objectivity and impartiality. The
Code of Conduct addresses conflicts of interest, confidentiality, fair dealing with stockholders, competitors and employees, insider
trading, compliance with laws and reporting any illegal or unethical behavior. As part of the Code of Conduct, any person subject
to the Code of Conduct is required to avoid or fully disclose interests or relationships that are harmful or detrimental to our
best interests or that may give rise to real, potential or the appearance of conflicts of interest. Our Board will have ultimate
responsibility for the stewardship of the Code of Conduct, and it will monitor compliance through our Corporate Governance and
Nominating Committee. Directors, officers and employees will be required to annually certify that they have not violated the Code
of Conduct. Our Code of Business Conduct and Ethics reflects the foregoing principles. The full text of our Code of Business Conduct
and Ethics is published on our website at https://www.apptechcorp.com/investor-relations/.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
intend to satisfy the disclosure requirement under Item 5.05 of Form 8-K relating to amendments to or waivers from any provision
of the Code of Business Conduct and Ethics applicable to our Chief Executive Officer and Chief Financial Officer by posting such
information on our website https://www.apptechcorp.com.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="executive"></A>EXECUTIVE
COMPENSATION</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">The following discussion
relates to the compensation of our named executive officers for years ended December 31, 2020 and 2019, consisting of Luke D&rsquo;Angelo,
our Chairman, Chief Executive Officer and Chief Investment Officer, Gary Wachs, our Chief Financial Officer, and our two
other most highly compensated executive officers as of December 31, 2020, Virgilio Llapitan, our President and Chief Operating
Officer, and Jeffrey Moriarty, our Corporate Secretary, Corporate Counsel and Vice President of Corporate Development.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Fiscal
Year 2020 and 2019 Summary Compensation Table</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 29.24%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8.5pt"><B>Name
    and Principal Position</B></FONT></TD>
    <TD STYLE="width: 1.22%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 6.42%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8.5pt"><B>Year</B></FONT></TD>
    <TD STYLE="width: 1.18%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 6.42%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8.5pt"><B>Salary
    ($)</B></FONT></TD>
    <TD STYLE="width: 1.22%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 4.86%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8.5pt"><B>Bonus
    ($)</B></FONT></TD>
    <TD STYLE="width: 1.02%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 6.94%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8.5pt"><B>Stock
    Awards ($)</B></FONT></TD>
    <TD STYLE="width: 1.26%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 6.06%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8.5pt"><B>Option
    Awards ($)</B></FONT></TD>
    <TD STYLE="width: 1.26%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 12.24%; border-bottom: black 1.5pt solid; padding-bottom: 0.75pt"><P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Non-Equity Incentive Plan
        Compensation</B></P>
        <P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>($)</B></P></TD>
    <TD STYLE="width: 1.26%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 11.2%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8.5pt"><B>All
    Other Compensation ($)</B></FONT></TD>
    <TD STYLE="width: 1.26%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 6.94%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8.5pt"><B>Total
    ($)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Luke
        D&rsquo;Angelo</FONT></P>

<P STYLE="margin: 0pt 0; font: 10pt/107% Times New Roman, Times, Serif"><I>Chairman of the Board; Chief Executive Officer;
and Chief Investment Officer</I></P>



</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;2019&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Gary Wachs</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Chief Financial Officer and </I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Director</I></P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2019</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Virgilio Llapitan&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>President and Chief Operating</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Officer</I></P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">39,250</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">686,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">725,250</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2019</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">25,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">25,000</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Jeffrey Moriarty</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Corporate Secretary; Corporate </I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Counsel; and Vice President of </I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Corporate Development</I></P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">85,800</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">392,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">477,800</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;2019&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">31,949</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">31,949</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Robert Sanchez&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Chief Technology Officer</I> (1)</P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;2019&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">21,250</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">21,250</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B></B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 98.94%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0pt; text-align: left; padding-left: 0pt; width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="padding-right: 0pt; width: 96%; padding-left: 0pt; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Sanchez served as our Chief Technology
    Officer until September 24, 2020 at which time he resigned from the Company.</FONT></TD>
    </TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 9pt; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Narrative
Explanation of Certain Aspects of the Summary Compensation Table</B></FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 9pt; text-indent: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
compensation paid to our named executive officers in 2019 consisted solely of a base salary to certain executives. Outside the
compensation above, and in an attempt by executives to show commitment to the Company, we have not paid any of our executive officers
in the years ended December 31, 2020 and 2019, other than for reimbursement of expenses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt; text-align: justify"><B><I>Employment Agreements
with Our Executive Officers</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">In association with
this Offering, we are entering restated employment agreements with each of our named executive officers (each an &ldquo;Employment
Agreement&rdquo;). The Employment Agreements shall provide, for a starting base salary and a potential annual bonus, which is
subject to adjustment by the Board from time to time. It is our intent to suspend providing equity compensation, not previously
contracted for all names executive officers, for a period of one year from this Offering. Each of the Employment Agreements will
provide that the applicable named executive officer&rsquo;s employment with us is &ldquo;at will.&rdquo; The named executive officers
are entitled to receive all other benefits generally available to our executive officers. The Employment Agreements may also provide
certain severance and change in control-related benefits to our named executive officers, including cash severance and vesting
acceleration upon the occurrence of certain defined events.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Outstanding
Equity Awards </B></FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>



<P STYLE="font: 12pt/11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth information regarding equity awards held by the Named Executive Officers as of December 31, 2020:&nbsp;</FONT></P>

<P STYLE="font: 10pt/11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="13" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option Awards</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Stock Awards</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Name</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Number of Securities Underlying Unexercised Options, Exercisable (#)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Number of Securities Underlying Unexercised Options, Not Exercisable (#)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option<BR> Exercise Price ($)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option<BR> Expiration Date</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Number of Shares or Units of Stock That Have Not Vested (#)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Market Value of Shares or Units of Stock That Have Not Vested ($)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 13%; text-align: left; padding-left: 0.25pt">&nbsp;Jeffrey Moriarty</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 13%; text-align: center; padding-left: 0.25pt">-</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">-&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right; padding-left: 0.25pt">150,000</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">135,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Severance
and Change in Control Benefits</B></FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No
employment agreements with our named executive officers provides severance and change in control benefits.</FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Benefits
upon Death or Disability</B></FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Death
of the Officer</I></B></FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
employment agreement of each of our named executive officers does not provide certain benefits if his employment is terminated
on account of his death.</FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Disability
of the Officer</I></B></FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
employment agreement of each of our named executive officers does not provide certain benefits if his employment is terminated
on account of his disability.</FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Other
Benefits</B></FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
provide vacation and other paid holidays to all employees, including our executive officers, which are comparable to those provided
at peer companies. When offered, our executive officers will be eligible to participate in all of our employee benefit plans,
such as medical, dental, vision, group life, disability and accidental death and dismemberment insurance, our employee stock purchase
plan and our 401(k) plan, in each case on the same basis as other employees, subject to applicable law, should such benefits exist.
At this time, we do not provide special benefits or other perquisites to our executive officers.</FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Policies
Regarding Recovery of Awards</B></FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Board of Directors have not adopted a policy that requires us to make retroactive adjustments to any cash or equity-based incentive
compensation paid to executive officers (or others) where the payment was predicated upon the achievement of financial results
that were subsequently the subject of a restatement. However, we may implement a clawback policy in accordance with the requirements
of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the &ldquo;Dodd-Frank Act&rdquo;) and the regulations
that will be issued under that act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Tax
and Accounting Treatment of Compensation</B></FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section
162(m) of the Internal Revenue Code places a limit of $1.0 million per person on the amount of compensation that we may deduct
in any one year with respect to our Chief Executive Officer and certain of our other executive officers. While the Board of Directors
considers deductibility factors when making compensation decisions, the board also looks at other considerations, such as providing
our executive officers with competitive and adequate incentives to remain with us and increase our business operations, financial
performance and prospects, as well as rewarding extraordinary contributions. No compensation to named executive officers exceeded
this threshold in 2019 or 2020.</FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
account for equity compensation paid to our employees under the rules of FASB ASC Topic 718, which requires us to estimate and
record an expense for each award of equity compensation over the service period of the award. Accounting rules also require us
to record cash compensation as an expense at the time the obligation is accrued. We have not tailored our executive compensation
program to achieve particular accounting results.</FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Policies
on Ownership, Insider Trading, Hedging and 10b5-1 Plans</B></FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
do not have formal stock ownership guidelines for our employees or directors, because the Board of Directors is satisfied that
stock and option holdings among our employees or directors, are sufficient at this time to provide motivation and to align this
group&rsquo;s interests with those of our stockholders. In addition, we believe that stock ownership guidelines are rare in fintech
companies at our stage, which means that ownership requirements would put us at a competitive disadvantage when recruiting and
retaining high-quality executives.</FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
insider trading policy, which is incorporated into our Code of Business Ethics, prohibits certain actions by our Executive Officers
relating to buying and selling our common stock. Our executive officers are authorized to enter into trading plans established
according to Section 10b5-1 of the Exchange Act with an independent broker-dealer (&ldquo;broker&rdquo;) designated by us. These
plans may include specific instructions for the broker to exercise vested options and sell Company stock on behalf of the executive
officer at certain dates, if our stock price is above a specified level or both. Under these plans, the executive officer no longer
has control over the decision to exercise and sell the securities in the plan, unless he or she amends or terminates the trading
plan during a trading window. Plan modifications are not effective until the 31st day after adoption. The purpose of these plans
is to enable executive officers to recognize the value of their compensation and diversify their holdings of our stock during
periods in which the executive officer would be unable to sell our common stock because material information about us had not
been publicly released. As of the record date, no named executive officer had a trading plan in place.</FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Stockholder
Advisory Vote on Executive Compensation</B></FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">Our Company did
not hold an advisory vote on executive compensation in 2019 but may take such action in the future. Both our compensation committee
and the Board intend to periodically reevaluate our executive compensation philosophy and practices in light of our performance,
needs and developments, including the outcome of future non-binding advisory votes by our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="directtor"></A>DIRECTOR
COMPENSATION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Director
Compensation Table for Year Ended December 31, 2020</B></FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
following table sets forth information regarding compensation earned by each of our directors during the fiscal year ended December
31, 2020:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom"><TD STYLE="border-bottom: black 1pt solid; padding-right: 3pt; padding-left: 2pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name(1)</B></FONT></TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-right: 3pt; padding-left: 2pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Fees Earned or Paid in Cash</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>($)</B></P></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-right: 3pt; padding-left: 3pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Fees Earned</B>&nbsp; <B>in
        Restricted Stock Units</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(2)</B></P></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-right: 3pt; padding-left: 2pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Option Awards</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>($)(3)</B></P></TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-right: 3pt; padding-left: 2pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Total</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>($) (4)</B></P></TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 2pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bobby
    Bedi</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 2pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Luke
    D&rsquo;Angelo</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 2pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael
    Gross </FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$
    55,500</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14,049</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">69,550</FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">William
    Huff </FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$
    140,800</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14,049</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">154,850</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mengyin
    H. Liang &lsquo;Roz Huang&rsquo;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$
    97,500</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14,049</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">111,550</FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael
    O&rsquo;Neal </FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$
    83,250</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14,049</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">97,300</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gary
    Wachs</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Christopher
    Williams</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$
    88,800</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14,049</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 2pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">102,850</FONT></TD></TR>
</TABLE>
<P STYLE="margin: 0">
<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)&nbsp;&nbsp;&nbsp;Mr. D&rsquo;Angelo, and Mr. Wachs were employed as executives during the year ended December 31, 2019.&nbsp;&nbsp;Bobby Bedi&rsquo;s
    term as a director of the company ended on July 28, 2020. </FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)&nbsp;&nbsp;&nbsp;The amounts reported in this column represent the aggregate grant date fair value of Restricted Stock Units in accordance
    with FASB ASC Topic 718. </FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)&nbsp;&nbsp;&nbsp;The amounts reported in this column represent the aggregate grant date fair value of option awards computed in accordance
    with FASB ASC Topic 718. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing
    model. </FONT></TD>
    <TD COLSPAN="3"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)&nbsp;&nbsp;&nbsp;The amounts reported in this column represent the aggregate grant date fair value of option awards computed in accordance
    with FASB ASC Topic 718. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing
    model. </FONT></TD>
    <TD COLSPAN="3"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 0.25pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="7" STYLE="border-bottom: black 1.5pt solid; padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Option
    Awards</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Stock
    Awards</B></FONT><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 22.78%; border-bottom: black 1.5pt solid; padding-top: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name</B></FONT></TD>
    <TD STYLE="width: 2.78%">&nbsp;</TD>
    <TD STYLE="width: 11.16%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number
    of Securities Underlying Unexercised Options, Exercisable (#)</B></FONT></TD>
    <TD STYLE="width: 2.78%">&nbsp;</TD>
    <TD STYLE="width: 11.16%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number
    of Securities Underlying Unexercised Options, Not Exercisable (#)</B></FONT></TD>
    <TD STYLE="width: 3.78%">&nbsp;</TD>
    <TD STYLE="width: 9.78%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Option
    Exercise Price ($)</B></FONT></TD>
    <TD STYLE="width: 2.78%">&nbsp;</TD>
    <TD STYLE="width: 9.86%; border-bottom: black 1.5pt solid; padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Option
    Expiration Date</B></FONT></TD>
    <TD STYLE="width: 3.78%">&nbsp;</TD>
    <TD STYLE="width: 7.78%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number
    of Shares or Units of Stock That Have Not Vested (#)</B></FONT></TD>
    <TD STYLE="width: 2.78%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 8.78%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Market
    Value of Shares or Units of Stock That Have Not Vested ($)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-top: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael Gross</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,250</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">18,750</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.562</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7/28/2023</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-top: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">William Huff</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,250</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">18,750</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.562</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7/28/2023</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">-</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mengyin H. Liang &lsquo;Roz Huang&rsquo;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,250</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">18,750</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.562</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7/28/2023</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-top: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael O&rsquo;Neal</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,250</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">18,750</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.562</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7/28/2023</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">-</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Christopher Williams </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,250</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">18,750</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.562</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7/28/2023</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD></TR>
</TABLE>


<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="certain"></A>CERTAIN
RELATIONSHIPS AND RELATED PARTY TRANSACTIONS</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Other
than the compensation agreements and other arrangements described under &ldquo;Executive Compensation&rdquo; and &ldquo;Director
Compensation&rdquo; in this prospectus and the transactions described below, since January&nbsp;1, 2018, there has not been and
there is not currently proposed, any transaction or series of similar transactions to which we were, or will be, a party in which
the amount involved exceeded, or will exceed, the lesser of (i) $120,000 or (ii)&nbsp;one percent of the average of our total
assets for the last two completed fiscal years, and in which any director, executive officer, holder of five percent or more of
any class of our capital stock or any member of the immediate family of, or entities affiliated with, any of the foregoing persons,
had, or will have, a direct or indirect material interest.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In 2019 and 2018,
we obtained $39,319 and $41,047 loans payable from Luke D&rsquo;Angelo, net. As of December 31, 2019 and 2018, the balance of
the loans payable was $93,901 and $54,083, respectively. The loans payable are due on demand, unsecured and non-interest bearing
as there are no formal agreements.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2019 and 2018, we reimbursed expenses related to various marketing expenses, professional fees and other expenses advanced by
two related parties and significant shareholders through other business ventures. Based on his ownership interest in Crossfire
Marketing Group, for the years ended December 31, 2019 and 2018, the reimbursement amounts to Michael Gross were $97,800 and $30,000,
respectively. Further, based on his ownership interest in Blake &amp; Wachs LTD, for the year ended December 31, 2019, the reimbursement
amount to Gary Wachs was $81,000.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2018, we obtained $1,400 loan payable from Michael Gross. As of December 31, 2019 and 2018, the balance of the loan payable was
$1,400. The loan payable is due on demand, unsecured and non-interest bearing as there are no formal agreements.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In 2017, we issued
$222,000 in convertible notes from Luke D&rsquo;Angelo. The convertible notes payable are currently due on demand, incur interest
at 10% per annum and are convertible at $0.10 per share. As of December 31, 2019 and 2018. Accrued interest related to the convertible
notes was $53,988 and $31,787, respectively. We are in default of the convertible notes payable.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Through
their business interests in Crossfire Marketing Group and Blake and Wachs, Michael B, Gross and Gary Wachs helped fund operations
through notes payable in primarily 2009 and 2010. The notes payable incur interest at 10% per annum and were due on December 31,
2016. As of December 31, 2019 and 2018, the aggregate balance of the notes payable was $620,356 and accrued interest was $575,480
and $512,945, respectively. As of December 31, 2019, we were in default of convertible notes payable.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2008, we issued $150,000 in convertible notes from Michael B. Gross and Gary Wachs. The convertible notes payable are currently
due on demand, incur interest at 15% per annum and convertible at $0.60 per share. As of December 31,2019 and 2018, accrued interest
related to the convertible notes was $243,375 and $220,875, respectively. As of December 31, 2019, we were in default of convertible
notes payable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indemnification
Agreements</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with this offering, we may to enter into new agreements to indemnify our directors and executive officers. These agreements
will, among other things, require us to indemnify these individuals for certain expenses (including attorneys&rsquo; fees), judgments,
fines and settlement amounts reasonably incurred by such person in any action or proceeding, including any action by or in our
right, on account of any services undertaken by such person on behalf of our company or that person&rsquo;s status as a member
of our board of directors to the maximum extent allowed under Wyoming law.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Policies
for Approval of Related Party Transactions</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All related persons
transactions were reviewed and approved on terms no less favorable than those that could be obtained from unaffiliated third parties.
Further. we intend to ensure that all future transactions between us and any Related Person are approved by a majority of the
members of the Board, including a majority of the independent and disinterested members of the Board, and are on terms no less
favorable to us than those that we could obtain from unaffiliated third-parties. Additionally, all such transactions shall be
reviewed and approved by the Audit Committee, which will present its determination to the Board as a whole.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with this offering, we expect to adopt a written related party transactions policy that will provide that such transactions
must be approved by our audit committee. This policy will become effective on the date on which the registration statement of
which this prospectus is part is declared effective by the SEC. Pursuant to this policy, the audit committee has the primary responsibility
for reviewing and approving or disapproving &ldquo;related party transactions,&rdquo; which are transactions between us and related
persons in which the aggregate amount involved exceeds or may be expected to exceed the lesser of (i) $120,000 or (ii)&nbsp;one
percent of the average of our total assets for the last two completed fiscal years, and in which a related person has or will
have a direct or indirect material interest. For purposes of this policy, a related person will be defined as a director, executive
officer, nominee for director, or greater than 5% beneficial owner of our common stock, in each case since the beginning of the
most recently completed year, and their immediate family members.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="principal"></A>PRINCIPAL
STOCKHOLDERS</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth certain information known to us regarding beneficial ownership of our common stock as of September
30, 2020 by:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">each
                                         person or group of affiliated persons known by us to be the beneficial owner of more
                                         than five percent of our capital stock;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">each
                                         of our named executive officers;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">each
                                         of our directors; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">all
                                         of our executive officers and directors as a group.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
column entitled &ldquo;Percentage of Shares Beneficially Owned&mdash;Before Offering&rdquo; is calculated based on shares of common
stock outstanding as of September 30, 2020, assuming the automatic conversion of all outstanding shares of our convertible preferred
stock into an aggregate of <B>&nbsp;</B>shares of our common stock upon the completion of this offering. The column entitled &ldquo;Percentage
of Shares Beneficially Owned&mdash;After Offering&rdquo; is based on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock to be outstanding after this offering, including the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock that we are selling in this offering, but not including any additional shares issuable upon exercise of outstanding
options.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have determined beneficial ownership in accordance with the rules of the SEC, and the information is not necessarily indicative
of beneficial ownership for any other purpose. These rules generally attribute beneficial ownership of securities to persons who
possess sole or shared voting power or investment power with respect to those securities as well as any shares of common stock
that the person has the right to acquire within 60 days of September 30, 2020 through the exercise of stock options or other rights.
These shares are deemed to be outstanding and beneficially owned by the person holding those options for the purpose of computing
the percentage ownership of that person, but they are not treated as outstanding for the purpose of computing the percentage ownership
of any other person. Unless otherwise indicated, the persons or entities identified in this table have sole voting and investment
power with respect to all shares shown as beneficially owned by them.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Except
as otherwise noted below, the address for persons listed in the table is c/o the Company at 5876 Owens Avenue, Suite 100, Carlsbad,
California 92008.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number
    of Shares</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Percentage</B>&nbsp;
    <B>of</B><BR>
    <B>Outstanding Shares</B><BR>
    <B>Beneficially Owned</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Beneficially</B><BR>
    <B>Owned</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Before
    Offering</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>After
    </B><BR>
    <B>Offering</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Directors, Director Nominees and Named
    Executive Officers</I></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top; width: 64%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Luke
    D'Angelo</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,034,537</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.05</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 9%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gary Wachs</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,831,517</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.70</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Virgilio Llapitan</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,897,500</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.14</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jeffrey Moriarty</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">800,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.90</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael Gross</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,331,517</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.14</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Christopher Williams
    (1)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,070,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.21</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mengyin H. Liang
    &lsquo;Roz Huang&rsquo;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">65,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.07</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">William Huff</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.09</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael O&rsquo;Neal</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">75,000</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.08</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All officers and
    directors as a group (9 persons)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">25,185,071</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">28.38</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Other 5% Stockholders</I></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Steve Cox</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,316,067</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.24</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Robert Sanchez (1)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5,500,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.20</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mehrak Hamzeh</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,500,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.07</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">690,000 shares
    are owned by HUD Investments, LLC, in which Christopher Williams wife, Karen Williams, is the sole owner.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5,000,000 shares
    are owned by GlobalTel Media, Inc., in which Robert Sanchez is the controlling shareholder. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="description"></A>DESCRIPTION
OF CAPITAL STOCK</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following descriptions are summaries of the material terms of our amended and restated certificate of incorporation and amended
and restated bylaws, which will become effective immediately prior to the closing of this offering. The descriptions of the common
stock and preferred stock give effect to changes to our capital structure that will occur upon the completion of this offering.
We refer in this section to our amended and restated certificate of incorporation as our certificate of incorporation, and we
refer to our amended and restated bylaws as our bylaws.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">General</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
completion of this offering, our authorized capital stock will consist of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
shares of common stock, par value $ per share, and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares
of preferred stock, par value $ per share, all of which shares of preferred stock will be undesignated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of February 12, 2021, 88,724,075 shares of our common stock were outstanding and held of record by stockholders, and 14 shares
of preferred stock were outstanding.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common
Stock</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of our stockholders.
The holders of our common stock do not have any cumulative voting rights. Holders of our common stock are entitled to receive
ratably any dividends declared by our board of directors out of funds legally available for that purpose, subject to any preferential
dividend rights of any outstanding convertible preferred stock. Our common stock has no preemptive rights, conversion rights or
other subscription rights or redemption or sinking fund provisions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the event of our liquidation, dissolution or winding up, holders of our common stock will be entitled to share ratably in all
assets remaining after payment of all debts and other liabilities and any liquidation preference of any outstanding convertible
preferred stock. The shares to be issued by us in this offering will be, when issued and paid for, validly issued, fully paid
and non-assessable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Preferred
Stock</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
the consummation of this offering, our board of directors will have the authority, without further action by our stockholders,
to issue up to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of preferred stock in one or more
series and to fix the rights, preferences, privileges and restrictions thereof. These rights, preferences and privileges could
include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and
the number of shares constituting, or the designation of, such series, any or all of which may be greater than the rights of common
stock. The issuance of our preferred stock could adversely affect the voting power of holders of common stock and the likelihood
that such holders will receive dividend payments and payments upon our liquidation. In addition, the issuance of preferred stock
could have the effect of delaying, deferring or preventing a change in control of our company or other corporate action. Immediately
after consummation of this offering, no shares of preferred stock will be outstanding, and we have no present plan to issue any
shares of preferred stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stock
Options</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left; text-indent: 0.4in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.4in">As of September 30, 2020, there were
outstanding options to purchase an aggregate of 297,500 shares of our common stock.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left; text-indent: 0.4in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Wyoming
Combination with Interested Stockholders Statute</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Wyoming Combination with Interested Stockholders Statute may also have an effect of delaying or making it more difficult to effect
a change in control of our company. This statute prevents an interested stockholder and a resident domestic Wyoming corporation
from entering into a combination, unless certain conditions are met. The statute defines combination to include any merger or
consolidation with an interested stockholder, or any sale, lease, exchange, mortgage, pledge, transfer or other disposition, in
one transaction or a series of transactions with an interested stockholder having:</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">a)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">an
                                         aggregate market value equal to 5 percent or more of the aggregate market value of the
                                         assets of the corporation;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">b)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">an
                                         aggregate market value equal to 5 percent or more of the aggregate market value of all
                                         outstanding shares of the corporation; or</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">c)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">representing
                                         10 percent or more of the earning power or net income of the corporation.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">An
interested stockholder means the beneficial owner of 10 percent or more of the voting shares of a resident domestic corporation,
or an affiliate or associate thereof. A corporation affected by the statute may not engage in a combination within three years
after the interested stockholder acquires its shares unless the combination or purchase is approved by the board of directors
before the interested stockholder acquired such shares. If approval is not obtained, then after the expiration of the three-year
period, the business combination may be consummated with the approval of the board of directors or a majority of the voting power
held by disinterested stockholders, or if the consideration to be paid by the interested stockholder is at least equal to the
highest of:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">a)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">the
                                         highest price per share paid by the interested stockholder within the three years immediately
                                         preceding the date of the announcement of the combination or in the transaction in which
                                         he became an interested stockholder, whichever is higher;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">b)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">the
                                         market value per common share on the date of announcement of the combination or the date
                                         the interested stockholder acquired the shares, whichever is higher; or</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">c)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">if
                                         higher for the holders of preferred stock, the highest liquidation value of the preferred
                                         stock.</FONT></TD></TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Nasdaq
Capital Market Listing</B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
intend to apply to list our common stock on The Nasdaq Capital Market under the trading symbol &ldquo;APCX&rdquo;.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transfer
Agent and Registrar</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.4in">The transfer agent
and registrar for our common stock is currently Transfer Online, Inc.&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="shares"></A>SHARES
ELIGIBLE FOR FUTURE SALE</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.4in">Prior to this offering,
shares of our common stock were quoted on the OTC Markets under the symbol &ldquo;APCX.&rdquo; Future sales of our common stock
in the public market, or the availability of such shares for sale in the public market, could adversely affect market prices prevailing
from time to time. As described below, only a limited number of shares will be available for sale shortly after this offering
due to contractual and legal restrictions on resale. Nevertheless, sales of our common stock in the public market after such restrictions
lapse, or the perception that those sales may occur, could adversely affect the prevailing market price at such time and our ability
to raise equity capital in the future.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
on the number of shares outstanding as of September 30, 2020, upon the completion of this offering, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock will be outstanding, assuming no exercise of the underwriters&rsquo; option to purchase additional shares
and no exercise of outstanding options. Of the outstanding shares, all of the shares sold in this offering, except that any shares
held by our affiliates, as that term is defined in Rule&nbsp;144 under the Securities Act, may only be sold in compliance with
the limitations described below, and&nbsp;shares of our common stock are restricted shares of common stock subject to time-based
vesting terms. All remaining shares of common stock held by existing stockholders immediately prior to the completion of this
offering, will be &ldquo;restricted securities&rdquo; as such term is defined in Rule 144. These restricted securities were issued
and sold by us, or will be issued and sold by us, in private transactions and are eligible for public sale only if registered
under the Securities Act or if they qualify for an exemption from registration under the Securities Act, including the exemptions
provided by Rule 144 or Rule 701, summarized below.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rule&nbsp;144</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
general, a person who has beneficially owned restricted stock for at least six months would be entitled to sell their securities
provided that (i)&nbsp;such person is not deemed to have been one of our affiliates at the time of, or at any time during the
90 days preceding, a sale and (ii)&nbsp;we are subject to the Securities Exchange Act of 1934, as amended, or the Exchange Act,
periodic reporting requirements for at least 90 days before the sale. Persons who have beneficially owned restricted shares for
at least six months but who are our affiliates at the time of, or any time during the 90 days preceding, a sale, would be subject
to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of securities
that does not exceed the greater of either of the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
                                         of the number of shares then outstanding, which will equal approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
                                         immediately after this offering and the concurrent private placements, assuming no exercise
                                         of the underwriters&rsquo; option to purchase additional shares, based on the number
                                         of shares outstanding as of September&nbsp;30, 2020; or</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.4in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                         average weekly trading volume of our common stock on The Nasdaq Global Market during
                                         the four calendar weeks preceding the filing of a notice on Form&nbsp;144 with respect
                                         to the sale;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">provided,
in each case, that we are subject to the Exchange Act periodic reporting requirements for at least 90&nbsp;days before the sale.
Such sales both by affiliates and by&nbsp;non-affiliates&nbsp;must also comply with the manner of sale, current public information
and notice provisions of Rule&nbsp;144.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
waiver or expiration of the&nbsp;[180-day]&nbsp;lock-up&nbsp;period described below, approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock will be eligible for sale under Rule 144. We cannot estimate the number of shares of our common stock that
our existing stockholders will elect to sell under Rule 144.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rule&nbsp;701</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rule&nbsp;701
under the Securities Act, as in effect on the date of this prospectus, permits resales of shares in reliance upon Rule&nbsp;144
but without compliance with certain restrictions of Rule&nbsp;144, including the holding period requirement. Most of our employees,
executive officers or directors who purchased shares under a written compensatory plan or contract may be entitled to rely on
the resale provisions of Rule&nbsp;701, but all holders of Rule&nbsp;701 shares are required to wait until 90 days after the date
of this prospectus before selling their shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">However,
substantially all Rule&nbsp;701 shares are subject to&nbsp;lock-up&nbsp;agreements as described below and under the section titled
&ldquo;Underwriters&rdquo; included elsewhere in this prospectus and will become eligible for sale upon the expiration of the
restrictions set forth in those agreements.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lock-Up&nbsp;Agreements</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
and each of our directors and executive officers and our stockholders holding more than 3.0% of our outstanding common stock intend
to sign a&nbsp;lock-up&nbsp;agreement that prevents them from selling any of our common stock or any securities convertible into
or exercisable or exchangeable for common stock for a period of not less than 180&nbsp;days from the date of this prospectus without
the prior written consent of the representatives, subject to certain exceptions. See the section entitled &ldquo;Underwriters&rdquo;
appearing elsewhere in this prospectus for more information.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Equity
Incentive Plans</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
intend to file one or more registration statements on&nbsp;Form&nbsp;S-8&nbsp;under the Securities Act to register our shares
issued or reserved for issuance under our equity incentive plans. The first such registration statement is expected to be filed
soon after the date of this prospectus and will automatically become effective upon filing with the SEC. Accordingly, shares registered
under such registration statement will be available for sale in the open market, unless such shares are subject to vesting restrictions
with us or the&nbsp;lock-up&nbsp;restrictions described above.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">MATERIAL
U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is a summary of the material U.S. federal income tax considerations relating to the purchase, ownership and disposition
of our Common Stock purchased in this offering, which we refer to collectively as our securities, but is for general information
purposes only and does not purport to be a complete analysis of all the potential tax considerations. This summary is based upon
the provisions of the Internal Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;), final, temporary and proposed Treasury
regulations promulgated thereunder, administrative rulings and pronouncements and judicial decisions, all in effect as of the
date hereof. These authorities may change, possibly retroactively, resulting in U.S. federal income and estate tax consequences
different from those set forth below. There can be no assurance that the Internal Revenue Service (the &ldquo;IRS&rdquo;) will
not challenge one or more of the tax consequences described herein, and we have not obtained, and do not intend to obtain, an
opinion of counsel or ruling from the IRS with respect to the U.S. federal income tax considerations relating to the purchase,
ownership or disposition of our securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
summary does not address any alternative minimum tax considerations, any considerations regarding the Medicare tax, any considerations
regarding the tax on net investment income, or the tax considerations arising under the laws of any state, local or non-U.S. jurisdiction,
or under any non-income tax laws, including U.S. federal gift and estate tax laws, except to the limited extent set forth below.
In addition, this summary does not address all of the tax consequences that may be relevant to investors, nor does it address
tax considerations applicable to an investor&rsquo;s particular circumstances or to investors that may be subject to special tax
rules, including, without limitation:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">banks, insurance companies or other financial
    institutions;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">tax-exempt entities or governmental organizations,
    including agencies or instrumentalities thereof;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">regulated investment companies and real estate
    investment trusts;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">controlled foreign corporations, passive foreign
    investment companies and corporations that accumulate earnings to avoid U.S. federal income tax;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">brokers or dealers in securities or currencies;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">traders in securities that elect to use a mark-to-market
    method of accounting for their securities holdings;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons that own, or are deemed to own, more
    than five percent of our capital stock (except to the extent specifically set forth below);</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">tax-qualified retirement plans;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">certain former citizens or long-term residents
    of the United States;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">partnerships or entities or arrangements classified
    as partnerships for U.S. federal income tax purposes and other pass-through entities including S corporations and trusts (and
    any investors therein);</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons who hold our securities as a position
    in a hedging transaction, &ldquo;straddle,&rdquo; &ldquo;conversion transaction&rdquo; or other risk reduction transaction
    or integrated investment;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons who do not hold our securities as a
    capital asset within the meaning of Section 1221 of the Code; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons deemed to sell our securities under
    the constructive sale provisions of the Code, or persons holding the securities as part of a &ldquo;straddle,&rdquo; hedge,
    conversion transaction, integrated transaction or other similar transaction.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, if a partnership (or entity or arrangement classified as a partnership for U.S. federal income tax purposes) holds our
securities, the tax treatment of a partner generally will depend on the status of the partner and upon the activities of the partnership.
Accordingly, partnerships that hold our securities, and partners in such partnerships, should consult their tax advisors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>You
are urged to consult your own tax advisors with respect to the application of the U.S. federal income tax laws to your particular
situation, as well as any tax consequences of the purchase, ownership and disposition of our securities arising under the U.S.
federal estate or gift tax laws or under the laws of any state, local, non-U.S., or other taxing jurisdiction or under any applicable
tax treaty.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CONSEQUENCES
TO U.S. HOLDERS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is a summary of the U.S. federal income tax consequences that will apply to a U.S. holder of our securities. For purposes
of this discussion, you are a U.S. holder if, for U.S. federal income tax purposes, you are a beneficial owner of our securities,
other than a partnership, that is:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an individual citizen or resident of the United
    States;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a corporation or other entity taxable as a corporation
    created or organized in the United States or under the laws of the United States, any State thereof or the District of Columbia;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an estate or trust whose income is subject to
    U.S. federal income tax regardless of its source; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a trust (x) whose administration is subject
    to the primary supervision of a U.S. court and which has one or more &ldquo;United States persons&rdquo; (within the meaning
    of Section 7701(a)(30) of the Code) who have the authority to control all substantial decisions of the trust or (y) which
    has made a valid election to be treated as a &ldquo;United States person.&rdquo;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Distributions</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
described in the section titled &ldquo;Market for Our Common Stock - Dividend Policy,&rdquo; we have never declared or paid cash
dividends on our Common Stock and do not anticipate paying any dividends on our Common Stock in the foreseeable future. However,
if we do make distributions in cash or other property on our Common Stock, those payments will constitute dividends for U.S. tax
purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax
principles. To the extent our distributions exceed both our current and our accumulated earnings and profits, the excess will
constitute a return of capital that will first reduce your basis in our Common Stock, but not below zero, and then will be treated
as gain from the sale or other disposition of stock as described below under &ldquo;&mdash;Sale, Exchange or Other Taxable Disposition
of Common Stock.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dividend
income may be taxed to an individual U.S. holder at rates applicable to long-term capital gains, provided that a minimum holding
period and other limitations and requirements are satisfied with certain exceptions. Any dividends that we pay to a U.S. holder
that is a corporation will qualify for the dividends received deduction if the requisite holding period is satisfied, subject
to certain limitations. U.S. holders should consult their own tax advisors regarding the holding period and other requirements
that must be satisfied in order to qualify for the reduced tax rate on dividends or the dividends-received deduction.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Sale,
Exchange or Other Taxable Disposition of Common Stock</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
U.S. holder will generally recognize capital gain or loss on the sale, exchange or other taxable disposition of our Common Stock.
The amount of gain or loss will equal the difference between the amount realized on the sale and such U.S. holder&rsquo;s adjusted
tax basis in such Common Stock. The amount realized will include the amount of any cash and the fair market value of any other
property received in exchange for such Common Stock. A U.S. holder&rsquo;s adjusted tax basis in its Common Stock will generally
equal the U.S. holder&rsquo;s acquisition cost or purchase price, less any prior distributions treated as a return of capital.
Gain or loss will be long-term capital gain or loss if the U.S. holder has held the Common Stock for more than one year. Long-term
capital gains of non-corporate U.S. holders are generally taxed at preferential rates. The deductibility of capital losses is
subject to certain limitations.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Information
Reporting and Backup Withholding</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
general, information reporting requirements may apply to dividends paid to a U.S. holder and to the proceeds of the sale or other
disposition of our Common Stock, unless the U.S. holder is an exempt recipient. Backup withholding may apply to such payments
if the U.S. holder fails to provide a taxpayer identification number, a certification of exempt status or has been notified by
the IRS that it is subject to backup withholding (and such notification has not been withdrawn).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
amounts withheld under the backup withholding rules will be allowed as a refund or a credit against a U.S. holder&rsquo;s U.S.
federal income tax liability provided the required information is timely furnished to the IRS.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Unearned
Income Medicare Tax. </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
3.8% Medicare contribution tax will generally apply to all or some portion of the net investment income of a U.S. holder that
is an individual with adjusted gross income that exceeds a threshold amount ($200,000, or $250,000 if married filing jointly).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CONSEQUENCES
TO NON-U.S. HOLDERS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is a summary of the U.S. federal income tax consequences that will apply to a non-U.S. holder of our securities. A &ldquo;non-U.S.
holder&rdquo; is a beneficial owner of our securities (other than a partnership or an entity or arrangement treated as a partnership
for U.S. federal income tax purposes) that, for U.S. federal income tax purposes, is not a U.S. holder. The term &ldquo;non-U.S.
holder&rdquo; includes:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
                                         non-resident alien individual (other than certain former citizens and residents of the
                                         U.S. subject to U.S. tax as expatriates);</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
                                         foreign corporation; </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an
                                         estate or trust that is not a U.S. holder; or </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any
                                         other Person that is not a U.S. holder</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">but
generally does not include an individual who is present in the U.S. for 183 days or more or who is otherwise treated as a U.S.
resident in the taxable year. If you are such an individual, you should consult your tax advisor regarding the U.S. federal income
tax consequences of the acquisition, ownership or sale or other disposition of our securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Distributions</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subject
to the discussion below regarding effectively connected income, any distribution paid to a non-U.S. holder, to the extent paid
out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles) generally will
constitute a dividend for U.S. federal income tax purposes and, provided such dividends are not effectively connected with the
non-U.S. holder&rsquo;s conduct of a trade or business within the U.S., will be subject to U.S. withholding tax either at a rate
of 30% of the gross amount of the dividend or such lower rate as may be specified by an applicable income tax treaty. In order
to receive a reduced treaty rate, a non-U.S. holder must provide us with an IRS Form W-8BEN, IRS Form W-8BEN-E or other applicable
IRS Form W-8 properly certifying qualification for the reduced rate. These forms must be provided prior to the payment of dividends
and must be updated periodically. A non-U.S. holder eligible for a reduced rate of U.S. withholding tax pursuant to an income
tax treaty should consult with its individual tax advisor to determine if you may obtain a refund of any excess amounts withheld
by timely filing an appropriate claim for refund with the IRS. If a non-U.S. holder holds our securities through a financial institution
or other agent acting on the non-U.S. holder&rsquo;s behalf, the non-U.S. holder will be required to provide appropriate documentation
to the agent, which then may be required to provide certification to us or our paying agent, either directly or through other
intermediaries.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dividends
received by a non-U.S. holder that are effectively connected with its conduct of a U.S. trade or business (and, if required by
an applicable income tax treaty, attributable to a permanent establishment or fixed base maintained by the non-U.S. holder in
the United States) are generally exempt from such withholding tax if the non-U.S. holder satisfies certain certification and disclosure
requirements. In order to obtain this exemption, the non-U.S. holder must provide us with an IRS Form W-8ECI or other applicable
IRS Form W-8 properly certifying such exemption. Such effectively connected dividends, although not subject to withholding tax,
are taxed at the same graduated U.S. federal income tax rates applicable to U.S. holders, net of certain deductions and credits.
In addition, dividends received by a corporate non-U.S. holder that are effectively connected with its conduct of a U.S. trade
or business may also be subject to a branch profits tax at a rate of 30% or such lower rate as may be specified by an applicable
income tax treaty. Non-U.S. holders should consult their own tax advisors regarding any applicable tax treaties that may provide
for different rules.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
distribution not constituting a dividend will be treated first as reducing (but not below zero) the Non-U.S. holder&rsquo;s adjusted
tax basis in its Common Stock and, to the extent such distribution exceeds the Non-U.S. holder&rsquo;s adjusted tax basis, as
gain realized from the sale or other disposition of the Common Stock, which will be treated as described under &ldquo;Non-U.S.
Holders &mdash; Gain on Sale, Exchange or Other Taxable Disposition of Common Stock&rdquo; below.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Gain
on Sale, Exchange or Other Taxable Disposition of Common Stock </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subject
to the discussion below regarding backup withholding and foreign accounts, a non-U.S. holder generally will not be required to
pay U.S. federal income tax on any gain realized upon the sale, exchange or other taxable disposition of our Common Stock unless:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the gain is effectively connected with the non-U.S.
    holder&rsquo;s conduct of a U.S. trade or business (and, if required by an applicable income tax treaty, the gain is attributable
    to a permanent establishment or fixed base maintained by the non-U.S. holder in the United States);</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the non-U.S. holder is a non-resident alien
    individual who is present in the United States for a period or periods aggregating 183 days or more during the calendar year
    in which the sale or disposition occurs and certain other conditions are met; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of our Common Stock constitute U.S. real
    property interests by reason of our status as a &ldquo;United States real property holding corporation&rdquo; (a USRPHC) for
    U.S. federal income tax purposes at any time within the shorter of the five-year period preceding the non-U.S. holder&rsquo;s
    disposition of, or the non- U.S. holder&rsquo;s holding period for, our Common Stock (provided that an exception does not
    apply), and, in the case where shares of our Common Stock are regularly traded on an established securities market, the Non-U.S.
    holder has owned, directly or constructively, more than 5% of our Common Stock at any time within the shorter of the five-year
    period preceding the disposition or such Non-U.S. holder&rsquo;s holding period for the shares of our Common Stock.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe that we are not currently and will not become a USRPHC for U.S. federal income tax purposes, and the remainder of this
discussion so assumes. However, because the determination of whether we are a USRPHC depends on the fair market value of our U.S.
real property relative to the fair market value of our other business assets, there can be no assurance that we will not become
a USRPHC in the future. Even if we become a USRPHC, however, as long as our Common Stock is regularly traded on an established
securities market, such Common Stock will be treated as U.S. real property interests only if the non-U.S. holder actually or constructively
hold more than five percent of such regularly traded Common Stock at any time during the shorter of the five-year period preceding
the non-U.S. holder&rsquo;s disposition of, or the non-U.S. holder&rsquo;s holding period for, our Common Stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
the non-U.S. holder is described in the first bullet above, it will be required to pay tax on the net gain derived from the sale,
exchange or other taxable disposition under regular graduated U.S. federal income tax rates, and a corporate non-U.S. holder described
in the first bullet above also may be subject to the branch profits tax at a rate of 30%, or (in each case) such lower rate as
may be specified by an applicable income tax treaty. An individual non-U.S. holder described in the second bullet above will be
required to pay a flat 30% tax (or such lower rate specified by an applicable income tax treaty) on the gain derived from the
sale, exchange or other taxable disposition, which gain may be offset by U.S. source capital losses for the year (provided the
non-U.S. holder has timely filed U.S. federal income tax returns with respect to such losses). Non-U.S. holders should consult
their own tax advisors regarding any applicable income tax or other treaties that may apply.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Federal
Estate Tax</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common
stock beneficially owned by an individual who is not a citizen or resident of the United States (as defined for U.S. federal estate
tax purposes) at the time of their death will generally be includable in the decedent&rsquo;s gross estate for U.S. federal estate
tax purposes. Such shares, therefore, may be subject to U.S. federal estate tax, unless an applicable estate tax treaty provides
otherwise.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Backup
Withholding and Information Reporting</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Generally,
we must report annually to the IRS the amount of dividends paid to you, your name and address and the amount of tax withheld,
if any. A similar report will be sent to you. Pursuant to applicable income tax treaties or other agreements, the IRS may make
these reports available to tax authorities in your country of residence. A Non-U.S. holder may have to comply with certification
procedures to establish that it is not a United States person in order to avoid information reporting and backup withholding requirements.
The certification procedures required to claim a reduced rate of withholding under a treaty generally will satisfy the certification
requirements necessary to avoid the backup withholding as well for example, by properly certifying your non-U.S. status on an
IRS Form W-8BEN or IRS Form W-8BEN-E or other applicable IRS Form W-8. Notwithstanding the foregoing, backup withholding and information
reporting may apply if either we or our paying agent has actual knowledge, or reason to know, that you are a U.S. person.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Backup
withholding is not an additional tax; rather, the U.S. federal income tax liability of persons subject to backup withholding will
be reduced by the amount of tax withheld. If withholding results in an overpayment of taxes, a refund or credit may generally
be obtained from the IRS, provided that the required information is furnished to the IRS in a timely manner.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Foreign
Account Tax Compliance</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Foreign Account Tax Compliance Act (&ldquo;FATCA&rdquo;) generally imposes withholding tax at a rate of 30% on dividends on and
gross proceeds from the sale or other disposition of our securities paid to a &ldquo;foreign financial institution&rdquo; (as
specially defined under these rules), unless any such institution (1) enters into, and complies with, an agreement with the IRS
to report, on an annual basis, information with respect to interests in, and accounts maintained by, the institution that are
owned by certain U.S. persons and by certain non-U.S. entities that are wholly or partially owned by U.S. persons and to withhold
on certain payments, or (2) if required under an intergovernmental agreement between the United States and an applicable foreign
country, reports such information to its local tax authority, which will exchange such information with the U.S. authorities.
An intergovernmental agreement between the United States and an applicable foreign country may modify these requirements. Accordingly,
the entity through which our securities are held will affect the determination of whether such withholding is required. Similarly,
dividends in respect of our securities held by an investor that is a non-financial non-U.S. entity that does not qualify under
certain exceptions will generally be subject to withholding at a rate of 30%, unless such entity either (1) certifies to us or
the applicable withholding agent that such entity does not have any &ldquo;substantial United States owners&rdquo; or (2) provides
certain information regarding the entity&rsquo;s &ldquo;substantial United States owners,&rdquo; which will in turn be provided
to the U.S. Department of Treasury. . Non-U.S. holders should consult their own tax advisors regarding the possible implications
of this legislation on their investment in our securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Each
prospective investor should consult its own tax advisor regarding the particular U.S. federal, state and local and non-U.S. tax
consequences of purchasing, owning and disposing of our securities, including the consequences of any proposed changes in applicable
laws.</B></FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="underwrites"></A>UNDERWRITERS</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have entered into an underwriting agreement, dated &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2021, with &#8239;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, who we refer to as the underwriter, with respect to the shares
of Common Stock subject to this Offering. Subject to certain conditions, we have agreed to sell to the underwriter, and the underwriter
has agreed to purchase, the number of shares of Common Stock provided below.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1.5pt solid; padding: 0.25pt 0.25pt 0.75pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Underwriter</B></FONT></TD>
    <TD STYLE="padding: 0.25pt 0.25pt 1.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; padding: 0.25pt 0.25pt 0.75pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number
    of Shares of Common Stock</B></FONT></TD>
    <TD STYLE="padding: 0.25pt 0.25pt 1.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 89%; padding: 0.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 8%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0.25pt 0.25pt 4.25pt 9.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</FONT></TD>
    <TD STYLE="padding: 0.25pt 0.25pt 4.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; padding: 0.25pt 0.25pt 2pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; padding: 0.25pt 0.25pt 2pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt 0.25pt 4.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
underwriter is offering the shares of Common Stock subject to its acceptance of the shares of Common Stock from us and subject
to prior sale. The underwriting agreement provides that the obligation of the underwriter to pay for and accept delivery of the
shares of Common Stock offered by this prospectus is subject to the approval of certain legal matters by their counsel and to
certain other conditions. The underwriter is obligated to take and pay for all of the shares of Common Stock if any such shares
are taken.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Over-Allotment
Option</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We have granted the
underwriter an option, exercisable for [45] days from the date of this prospectus, to purchase up to an aggregate of shares of
Common Stock to cover over-allotments, if any, at the public Offering Price set forth on the cover page of this prospectus, less
the underwriting discount. The underwriter may exercise this option solely for the purpose of covering over-allotments, if any,
made in connection with the offering of the shares of Common Stock offered by this prospectus. If the underwriter exercises its
option, the underwriter will be obligated, subject to certain conditions, to purchase the number of additional shares of Common
Stock for which the option has been exercised.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Discount,
Commissions and Expenses</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
underwriter has advised us that it proposes to offer the shares of Common Stock to the public at the public Offering Price set
forth on the cover page of this prospectus and to certain dealers at that price less a concession not in excess of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share
of Common Stock. The underwriter may allow, and certain dealers may reallow, a discount from the concession not in excess of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
per Unit to certain brokers and dealers. After this Offering, the public Offering Price, concession and reallowance to dealers
may be changed by the underwriter. No such change will change the amount of proceeds to be received by us as set forth on the
cover page of this prospectus. The shares of Common Stock are offered by the underwriter as stated herein, subject to receipt
and acceptance by it and subject to its right to reject any order in whole or in part. The underwriter has informed us that it
does not intend to confirm sales to any accounts over which they exercise discretionary authority.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table shows the underwriting discounts payable to the underwriter by us in connection with this offering. Such amounts
are shown assuming both no exercise and full exercise of the underwriter&rsquo;s over-allotment option to purchase additional
shares of Common Stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt 0.25pt 1.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1.5pt solid; padding: 0.25pt 0.25pt 0.75pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Per
    Share of Common Stock</B></FONT></TD>
    <TD STYLE="padding: 0.25pt 0.25pt 1.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1.5pt solid; padding: 0.25pt 0.25pt 0.75pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total
    Without Exercise of Over-Allotment Option</B></FONT></TD>
    <TD STYLE="padding: 0.25pt 0.25pt 1.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1.5pt solid; padding: 0.25pt 0.25pt 0.75pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total
    With Exercise of Over-Allotment Option</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 67%; padding: 0.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Public
    offering price</FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 8%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 8%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 8%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Underwriting
    discount (&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%)</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
have agreed to reimburse the representative of the underwriter for the representative&rsquo;s accountable expenses, including
the representative&rsquo;s legal fees, as well as other fees, expenses and disbursement up to a maximum amount of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; . We have
paid $ the representative as an advance to be applied towards reasonable out-of-pocket expenses, or the advances. Any portion
of the advance shall be returned back to us to the extent not actually incurred. We estimate that the total expenses payable by
us in connection with this offering, other than the underwriting discounts referred to above, will be approximately $ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Indemnification</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have agreed to indemnify the underwriter against certain liabilities, including liabilities under the Securities Act of 1933,
as amended, or the Securities Act, and liabilities arising from breaches of representations and warranties contained in the underwriting
agreement, or to contribute to payments that the underwriter may be required to make in respect of those liabilities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Lock-Up
Agreements</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We,
our officers, directors and certain of our stockholders have agreed to, subject to limited exceptions, for a period of days after
the Offering is completed, not to offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or
otherwise dispose of, directly or indirectly any shares of Common Stock or any securities convertible into or exchangeable for
our Common Stock either owned as of the date of the underwriting agreement or thereafter acquired without the prior written consent
of the representative of the underwriter. The representative of the underwriter may, in its sole discretion and at any time or
from time to time before the termination of the lock-up period, without notice, release all or any portion of the securities subject
to lock-up agreements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Price
Stabilization, Short Positions and Penalty Bids</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with the Offering the underwriter may engage in stabilizing transactions, over-allotment transactions, syndicate covering
transactions and penalty bids in accordance with Regulation M under the Exchange Act:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stabilizing transactions
    permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a specified maximum.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Over-allotment involves
    sales by the underwriter of shares of Common Stock in excess of the number of shares of Common Stock the underwriter is obligated
    to purchase, which creates a short position. The short position may be either a covered short position or a naked short position.
    In a covered short position, the number of shares of Common Stock over-allotted by the underwriter is not greater than the
    number of shares of Common Stock that it may purchase in the over-allotment option. In a naked short position, the number
    of shares of Common Stock involved is greater than the number of shares of Common Stock in the over-allotment option. The
    underwriter may close out any covered short position by either exercising its over-allotment option or purchasing additional
    shares of Common Stock in the open market.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Syndicate covering
    transactions involve purchases of shares of the Common Stock in the open market after the distribution has been completed
    in order to cover syndicate short positions. In determining the source of shares to close out the short position, the underwriter
    will consider, among other things, the price of shares available for purchase in the open market as compared to the price
    at which it may purchase shares through the over-allotment option. If the underwriter sells more shares than could be covered
    by the over-allotment option, a naked short position, the position can only be closed out by buying shares in the open market.
    A naked short position is more likely to be created if the underwriter is concerned that there could be downward pressure
    on the price of the shares in the open market after pricing that could adversely affect investors who purchase in the offering.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Penalty bids permit
    a syndicate representative to reclaim a selling concession from a syndicate member when the Common Stock originally sold by
    the syndicate member is purchased in a stabilizing or syndicate covering transaction to cover syndicate short positions.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">These
stabilizing transactions, syndicate covering transactions and penalty bids, to the extent applicable, may have the effect of raising
or maintaining the market price of our Common Stock or preventing or retarding a decline in the market price of the Common Stock.
As a result, the price of our securities may be higher than the price that might otherwise exist in the open market. Neither we
nor the underwriter make any representation or prediction as to the direction or magnitude of any effect that the transactions
described above may have on the price of our Common Stock. In addition, neither we nor the underwriter make any representations
that the underwriter will engage in these stabilizing transactions or that any transaction, once commenced, will not be discontinued
without notice.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Nasdaq
Listing</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">We intend to apply
to list our shares of Common Stock on The Nasdaq Capital Market under the symbol &ldquo;APCX&rdquo;.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="legal"></A>LEGAL
MATTERS</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
validity of the shares of common stock offered by this prospectus will be passed upon for us by Nelson Mullins Riley &amp; Scarborough
LLP, Washington, D.C. Certain legal matters relating to this offering will be passed upon for the underwriters by &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; background-color: white">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="experts"></A>EXPERTS</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">dbbmckennon,
independent registered public accounting firm, has audited our consolidated financial statements on December&nbsp;31, 2019 and
2018, and for each of the two years in the period ended December&nbsp;31, 2019, as set forth in their report. We&rsquo;ve included
our financial statements in the prospectus and elsewhere in the registration statement in reliance on dbbmckennon&rsquo;s report,
given on their authority as experts in accounting and auditing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A name="ehere"></A>WHERE
YOU CAN FIND MORE INFORMATION</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify; text-indent: 0.4in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have filed with the SEC a registration statement on&nbsp;Form&nbsp;S-1&nbsp;(File Number 333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)
under the Securities Act with respect to the common stock we are offering by this prospectus. This prospectus does not contain
all of the information included in the registration statement. For further information pertaining to us and our common stock,
you should refer to the registration statement and to its exhibits. Whenever we make reference in this prospectus to any of our
contracts, agreements or other documents, the references are not necessarily complete, and you should refer to the exhibits attached
to the registration statement for copies of the actual contract, agreement or other document.</FONT></P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman PS Std,serif; margin: 0; text-indent: 24pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are subject to the information and reporting requirements of the Securities Exchange Act of 1934, as amended, and, in accordance
with this law, file periodic reports, proxy statements and other information with the SEC. You can read our SEC filings, including
the registration statement, at the SEC&rsquo;s website at www.sec.gov. We also maintain a website at www.apptechcorp.com.
You may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished
to, the SEC. Information contained on our website is not a part of this prospectus and the inclusion of our website address in
this prospectus is an inactive textual reference only.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>INDEX
TO FINANCIAL STATEMENTS</B>&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Page No.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 91%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#report">Report of Independent Registered Public Accounting Firm</A> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
    &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT></TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-2</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#balance">Consolidated Balance Sheets as of December 31, 2019 and 2018</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;F-3</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#sop">Consolidated Statements of Operations for the years ended December 31, 2019 and 2018</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-4</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#equity">Consolidated Statements of Stockholders' Deficit for the years ended December 31, 2019 and 2018</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-5</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#cashflow">Consolidated Statements of Cash Flows for the years ended December 31, 2019 and 2018</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-6</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#notes">Notes to the Consolidated Financial Statements</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-7</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 105%"><A HREF="#balance2">Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019 (unaudited)</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-19</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 105%"><A HREF="#sop2">Consolidated Statements of Operations for the three months and the nine months ended September 30, 2020 and 2019 (unaudited)</A> </FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-20</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 105%"><A HREF="#equity2">Consolidated Statements of Stockholders&rsquo; Deficit for the three months and the nine months ended September 30, 2020 and 2019 (unaudited)</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-21</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 105%"><A HREF="#cash2">Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019 (unaudited)</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-22</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 105%"><A HREF="#notes2">Notes to the Unaudited Consolidated Financial Statements</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-23</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="report"></A><B>REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
the Board of Directors and<BR>
Stockholders of AppTech Corp.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Opinion
on the Financial Statements</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have audited the accompanying consolidated balance sheets of AppTech Corp. (the &ldquo;Company&rdquo;) as of December 31, 2019
and 2018, the related consolidated statements of operations, stockholders&rsquo; deficit, and cash flows, for the years then ended,
and the related notes (collectively referred to as the &ldquo;financial statements&rdquo;). In our opinion, the financial statements
present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results
of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in
the United States of America.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Going
Concern</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed
in Note 3 to the financial statements, the Company has suffered recurring losses from operations and has a negative working capital,
which raises substantial doubt about its ability to continue as a going concern. Management&rsquo;s plans in regard to these matters
are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this
uncertainty.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Basis
for Opinion</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
financial statements are the responsibility of the Company&rsquo;s management. Our responsibility is to express an opinion on
the Company&rsquo;s financial statements based on our audits. We are a public accounting firm registered with the Public Company
Accounting Oversight Board (United States) (&ldquo;PCAOB&rdquo;) and are required to be independent with respect to the Company
in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not
for the purpose of expressing an opinion on the effectiveness of the Company&rsquo;s internal control over financial reporting.
Accordingly, we express no such opinion.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that our audits provide a reasonable basis for our opinion.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
dbbmckennon</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have served as the Company&rsquo;s auditor since 2014.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">San
Diego, California</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">March
30, 2020</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="balance"></A><B>APPTECH
CORP. AND SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CONSOLIDATED
BALANCE SHEETS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>DECEMBER
31, 2019 and 2018</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">December 31,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2018</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-indent: -7.5pt; padding-left: 7.75pt">ASSETS</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; text-indent: -7.5pt; padding-left: 20.25pt">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">24,159</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,384</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29,836</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,802</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Deposit escrow</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 20.25pt">Security deposit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,948</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 30.25pt">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84,943</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,186</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Security deposit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,948</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 7.75pt">Property and equipment, net</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">65</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: -7.5pt; padding-left: 20.25pt">TOTAL ASSETS</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,943</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">31,199</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">LIABILITIES AND STOCKHOLDERS' DEFICIT</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,707,878</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,557,405</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,334,480</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,194,809</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Stock repurchase liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">430,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">430,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Loans payable related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">93,401</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">54,082</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Convertible notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">620,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">620,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Convertible notes payable related parties,</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">372,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">372,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,104,081</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,140,081</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 20.25pt">Notes payable related parties</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">708,493</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">708,493</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 30.25pt">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,370,333</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,076,870</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Long-term liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 20.25pt">Accounts payable</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">160,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 30.25pt">Total long-term liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">160,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">TOTAL LIABILITIES</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,530,333</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,076,870</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Commitments and contingencies (Note 7)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Stockholders' Deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Series A preferred stock; $0.001 par value; 100,000 shares authorized; 14 shares issued and outstanding at December 31, 2019 and 2018</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Common stock, $0.001 par value; 1,000,000,000 shares authorized; 84,153,825 and 86,797,132 and outstanding at December 31, 2019 and 2018, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84,154</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">86,797</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,230,869</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,284,735</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 20.25pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(40,760,413</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(39,417,203</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 30.25pt">Total stockholders' deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(7,445,390</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(7,045,671</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: -7.5pt; padding-left: 30.25pt">TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,943</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">31,199</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">See
accompanying notes to the consolidated financial statements.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="sop"></A><B>APPTECH
CORP. AND SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CONSOLIDATED
STATEMENTS OF OPERATIONS </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>FOR
THE YEARS ENDED DECEMBER 31, 2019 and 2018</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">December 31,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2018</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; text-indent: -7.5pt; padding-left: 7.75pt">Revenues</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">256,138</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">253,785</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 7.75pt">Cost of revenues</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">101,638</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">108,389</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">154,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">145,396</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">General and administrative, including stock based compensation of $91,414 and $1,547,388, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,020,869</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,912,218</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 20.25pt">Research and development</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">82,057</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">279,685</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 7.75pt">Total operating expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,102,926</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,191,903</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(948,426</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,046,507</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Other income (expenses)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(288,784</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(464,616</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 20.25pt">Other expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(106,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 30.25pt">Total other income (expenses)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(394,784</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(464,616</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Loss before provision for income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,343,210</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,511,123</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 7.75pt">Provision for income taxes</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -7.5pt; padding-left: 7.75pt">Net loss</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,343,210</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(2,511,123</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -7.5pt; padding-left: 7.75pt">Basic and diluted net loss per common share</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.02</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.03</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -7.5pt; padding-left: 7.75pt">Weighted-average number of shares used basic and diluted per share amounts</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,473,862</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">87,346,661</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">See
accompanying notes to the consolidated financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="equity"></A><B>APPTECH
CORP. AND SUBSIDIARIES </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CONSOLIDATED
STATEMENTS OF STOCKHOLDERS&rsquo; DEFICIT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>FOR
THE YEARS ENDED DECEMBER 31, 2019 and 2018</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">Series A Preferred</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">Common Stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Additional Paid-</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Accumulated</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Stockholders'</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Shares</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Amount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Shares</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Amount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">in Capital</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Deficit</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; text-indent: -7.5pt; padding-left: 7.75pt">Balance December 31, 2017</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; text-align: right">14</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; text-align: right">86,052,038</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">86,052</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">30,552,488</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">(36,906,080</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">(6,267,540</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,511,123</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,511,123</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Imputed interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,800</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,800</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Common stock issued for rent</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,450</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Common stock issued for subscriptions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">482,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">482</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">94,818</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95,300</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Common stock issued for merchant equity program</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,094</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,449</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,504</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Common stock issued for services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,758,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,758</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,545,630</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,547,388</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Common stock cancelled from</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">AppTech Corp officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,600,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,600</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,600</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 7.75pt">Proceeds from sale of repurchase option</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">37,500</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">37,500</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -7.5pt; padding-left: 7.75pt">Balance December 31, 2018</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">86,797,132</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">86,797</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,284,735</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(39,417,203</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7,045,671</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,343,210</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,343,210</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Imputed interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,800</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,800</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Common stock issued for rent</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,360</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,400</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Common stock issued for subscriptions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">275,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">275</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">68,475</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">68,750</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Common Stock issued for</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Merchant equity program</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,193</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,840</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,877</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Common stock issued for services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">454,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">455</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">90,959</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">91,414</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Common stock cancelled</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,450,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,450</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,450</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 7.75pt">Proceeds from sale of repurchase option</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">736,250</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">736,250</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: -7.5pt; padding-left: 7.75pt">Balance December 31, 2019</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">14</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,153,825</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,154</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">33,230,869</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(40,760,413</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(7,445,390</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">See
accompanying notes to the consolidated financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="cashflow"></A><B>APPTECH
CORP. AND SUBSIDIARIES </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CONSOLIDATED
STATEMENTS OF CASH FLOWS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>FOR
THE YEARS ENDED DECEMBER 31, 2019 and 2018</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">December 31,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2018</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">CASH FLOWS FROM OPERATING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 45%; text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(1,343,210</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(2,511,123</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Adjustments to reconcile net loss to net cash used in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 30.25pt">Stock issued for services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">91,414</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,547,388</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 30.25pt">Stock issued for rent</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,400</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 30.25pt">Imputed interest on notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,800</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,800</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 30.25pt">Amortization of debt discount</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,258</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 30.25pt">Depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">65</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">129</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 30.25pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,034</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 30.25pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">310,473</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">133,811</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 30.25pt">Accrued liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">154,548</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">497,438</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 40.25pt">Net cash used in operating activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(760,544</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(192,801</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">CASH FLOWS FROM INVESTING ACTIVITIES</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Deposit escrow</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(25,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 20.25pt">Security deposit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(5,948</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 30.25pt">Net cash used in investing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(25,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(5,948</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">CASH FLOWS FROM FINANCING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Proceeds from loans payable - related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,319</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">41,047</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Payments on notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(36,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Proceeds from sale of repurchase option</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">736,250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 20.25pt">Proceeds from sale of common stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">68,750</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">95,300</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 40.25pt">Net cash provided by financing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">808,319</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">173,847</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Changes in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,775</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(24,902</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 20.25pt">Cash and cash equivalents, beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,384</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">26,286</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -7.5pt; padding-left: 20.25pt">Cash and cash equivalents, end of period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">24,159</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,384</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Supplemental disclosures of cash flow information:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -7.5pt; padding-left: 30.25pt">Cash paid for interest</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5,805</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -7.5pt; padding-left: 30.25pt">Cash paid for income taxes</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7,057</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.75pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 20.25pt">Non cash investing and financing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -7.5pt; padding-left: 30.25pt">Common stock issued for merchant equity liability</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">14,877</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">13,504</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">See
accompanying notes to the consolidated financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="notes"></A><B>APPTECH
CORP. AND SUBSIDIARIES </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
1 - ORGANIZATION AND DESCRIPTION OF BUSINESS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">AppTech
Corp. (&ldquo;AppTech&rdquo; or the &ldquo;Company&rdquo;) is a Wyoming Corporation incorporated on July 2, 1998.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">AppTech
Corp. is a FinTech company providing electronic payment processing technologies and merchant services. This includes credit card
processing, Automated Clearing House (&ldquo;ACH&rdquo;) processing, gift and loyalty cards and e-commerce. The Company expanded
its core services to include global Short Messaging Service (&ldquo;SMS&rdquo;) patented text messaging and secure mobile payments
based on Multi-factor authentication technologies. The patented two-way text chat platform enables secure SMS services including
mobile payments, notifications, authentication, marketing, information queries and reporting. Other services include digital marketing,
lead generation, mobile app development, and intellectual property rights development.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Basis
of Presentation </U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s consolidated financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America (&ldquo;U.S. GAAP&rdquo;). Also see Note 3.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Principles
of Consolidation</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s accounts include financials of the Company and its wholly owned subsidiaries, Transcendent One, Inc. and TransTech
One, LLC. All significant inter-company transactions have been eliminated in consolidation. The operations of Transcendent One,
Inc. and TransTech One, LLC are insignificant and the Company dissolved the subsidiaries on October 8, 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Use
of Estimates</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during
the reporting period. Significant estimates include the estimated liabilities related to various vendors in which communications
have ceased, contingent liabilities, and realization of tax deferred tax assets. Actual results could differ from those estimates.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Concentration
of Credit Risk</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits of $250,000
per institution that pays Federal Deposit Insurance Corporation (&ldquo;FDIC&rdquo;) insurance premiums. The Company has never
experienced any losses related to these balances.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accounts receivable from merchant services are paid by the financial institutions on a monthly basis. The Company currently uses
three financial institutions to service their merchants for which represented 100% of accounts receivable as of December 31, 2019
and 2018. The loss of one of these financial institutions would not have a significant impact on the Company&rsquo;s operations
as there are additional financial institutions available to the Company. For the years ended December 31, 2019 and 2018, the one
merchant (customer) represented approximately 39% and 35% of the total revenues, respectively. The loss of this customer would
have significant impact on the Company&rsquo;s operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Cash
and Cash Equivalents</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company classifies its highly liquid investments with maturities of three months or less at the date of purchase as cash equivalents.
Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designations
of each investment as of the balance sheet date for each reporting period. The Company classifies its investments as either short-term
or long-term based on each instrument&rsquo;s underlying contractual maturity date. Investments with maturities of less than 12
months are classified as short-term and those with maturities greater than 12 months are classified as long-term. The cost of
investments sold is based upon the specific identification method.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Accounts
Receivable and Allowance for Doubtful Accounts</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounts
receivable is recorded net of an allowance for doubtful accounts, if needed. The Company considers any changes to the financial
condition of its financial institutions used and any other external market factors that could impact the collectability of its
receivables in the determination of its allowance for doubtful accounts. The Company does not expect to have write-offs or adjustments
to accounts receivable which could have a material adverse effect on its consolidated financial position, results of operations
or cash flows as the portion which is deemed uncollectible is already taken into account when the revenue is recognized.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Revenue
Recognition</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Financial Accounting Standards Board (&ldquo;FASB&rdquo;) issued Accounting Standards Update (&ldquo;ASU&rdquo;) No. 2014-09,
codified as Accounting Standards Codification (&ldquo;ASC) 606 Revenue from Contracts with Customers, which provides a single
comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The Company adopted ASC
606 effective January 1, 2019 using modified retrospective basis and the cumulative effect was immaterial to the consolidated
financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company provides merchant processing solutions for credit cards and electronic payments. In all cases, the Company acts as an
agent between the merchant which generates the credit card and electronic payments, and the bank which processes such payments.
The Company&rsquo;s revenue is generated on services priced as a percentage of transaction value or a specified fee transaction,
depending on the card or transaction type. Revenue is recorded as services are performed which is typically when the bank processes
the merchant&rsquo;s credit card and electronic payments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company provides various Cloud services to business clients. Revenues generated from the services as agreed upon in a Cloud Service
Agreement. The revenue is recorded as the services are performed and billed in advance on a monthly basis. Revenues from these
services represent less than 5% of the Company&rsquo;s total revenues.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consideration
paid to customers, such as amounts earned under our customer equity incentive program, are recorded as a reduction to revenues.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Fair
Value of Financial Instruments</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ASC
820, Fair Value Measurements and Disclosures defines fair value 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 also 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
standard describes three levels of inputs that may be used to measure fair value:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
fair value hierarchy prioritizes the inputs used in valuation techniques into three levels as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 7%; padding: 0.25pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Level
    1</B></FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 92%; padding: 0.25pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Observable
    inputs &ndash; unadjusted quoted prices in active markets for identical assets and liabilities;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding: 0.25pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Level
    2</B></FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding: 0.25pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Observable
    inputs &ndash; other than the quoted prices included in Level 1 that are observable for the asset or liability through corroboration
    with market data; and</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding: 0.25pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Level
    3</B></FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding: 0.25pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unobservable
    inputs &ndash; includes amounts derived from valuation models where one or more significant inputs are unobservable.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s financial instruments consist of cash and cash equivalents, accounts receivable, vendor deposits, accounts payable,
accrued expenses, etc. The carrying value of these assets and liabilities is representative of their fair market value, due to
the short maturity of these instruments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Research
and Development</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
accordance with ASC 730, Research and Development (&ldquo;R&amp;D&rdquo;) costs are expensed when incurred. R&amp;D costs include
costs of acquiring patents and other unproven technologies, contractor fees and other costs associated with the development of
the SMS short code texting platform, contract and other outside services. Total R&amp;D costs for the years ended December 31,
2019 and 2018 were $82,057 and $279,685, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Property
and Equipment</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Property
and equipment is recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are
charged to operations as incurred. Depreciation of property and equipment is computed by the straight-line method (after taking
into account their respective estimated residual values) over the assets estimated useful life of five (5) years. Upon sale or
retirement of equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected
in the consolidated statements of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Impairment
of Long-Lived Assets</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Long-lived
assets are reviewed for impairment when there is evidence that events or changes in circumstances indicate that the carrying amount
of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying
amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group.
If the carrying amount of an asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized
for the amount by which the carrying amount of the asset or asset group exceeds the estimated fair value of the asset or asset
group. Long-lived assets to be disposed of by sale are reported at the lower of their carrying amounts or their estimated fair
values less costs to sell and are not depreciated. As of December 31, 2019 and 2018, there were no asset impairments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Income
Taxes</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included
in the consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the
differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the
fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the
extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable income in the fiscal 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 consolidated statement of operations in the period that includes the enactment date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue
Service and other tax authorities. In addition, the calculation of the Company&rsquo;s tax liabilities involves dealing with uncertainties
in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions based on a two-step
process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates
that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation
processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized
upon settlement. While the Company believes it has appropriate support for the positions taken on its tax returns, the Company
regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision for
income taxes. The Company continually assesses the likelihood and amount of potential adjustments and adjusts the income tax provision,
income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. As of December
31, 2019 and 2018, the Company does not believe any provisions are required in connection with uncertain tax positions as there
are none.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Per
Share Information</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Basic
net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common
stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the
weighted average number of shares of common stock and potentially outstanding shares of common stock during the period.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2019 and 2018, the Company had potential dilutive securities related to options, warrants, Series A preferred
stock and convertible notes payable. These dilutive securities were not included within the calculation of dilutive net loss per
common share as the effects would have been anti-dilutive.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Convertible
Debt</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Convertible
debt is accounted for under the guidelines established by ASC 470-20 Conversion and Other Options. ASC 470-20 governs the calculation
of an embedded beneficial conversion, which is treated as an additional discount to the instruments where derivative accounting
does not apply. The amount of the value of additional stock and other consideration in addition to the beneficial conversion feature
may reduce the carrying value of the instrument to zero, but no further. The discounts are accreted over the term of the debt
using the straight line method due to the short terms of the notes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company accounts for modifications of its embedded beneficial conversions, in accordance with ASC 470-50 Modifications and Extinguishments.
ASC 470-50 requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature
and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in
a debt extinguishment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Stock
Based Compensation</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company recognizes as compensation expense all share-based payment awards made to employees, directors, and consultants including
grants of stock options and warrants, based on estimated fair values. Fair value is generally determined based on the closing
price of the Company&rsquo;s common stock on the date of grant and is recognized over the service period. The Company has several
consulting agreements that have share based payment awards based on performance. These agreements typically require the Company
to issue common stock to the consultants on a monthly basis. The Company records the fair market value of the common stock issuable
at each month end when the performance is complete based upon the closing market price of the Company&rsquo;s common stock. The
Company has entered into board of directors agreements that have share based payment awards based on service. These agreements
require the Company to issue common stock to the directors, earned on a monthly basis, over the one year term of the agreement.
The Company records the fair market value of the common stock issuable at the end of the month when the director is appointed
to the board based upon the closing market price of the Company&rsquo;s common stock</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>New
Accounting Pronouncements</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
FASB issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date that amend the original
text of ASC. The Company believes those issued to date either (i) provide supplemental guidance, (ii) are technical corrections,
(iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
February 2016, the FASB issued ASU 2016-02, Leases (Topic 840), to increase transparency and comparability among organizations
by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements.
The amendments in this standard are effective for fiscal years beginning after December 15, 2018, including interim periods within
those fiscal years, for a public entity. Early adoption of the amendments in this standard is permitted for all entities, and
the Company must recognize and measure leases at the beginning of the earliest period presented using a modified retrospective
approach.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
3 &ndash; GOING CONCERN</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
reflected in the accompanying consolidated financial statements, during the years ended December 31, 2019 and 2018, the Company
incurred a net loss of $1,343,210 and $2,511,123 and used cash of $760,544 and $192,801 in operating activities. In addition,
the Company had negative working capital of $7,285,390 and $7,051,684 and an accumulated deficit of $40,760,413 and $39,417,203
at December 31, 2019 and 2018. These factors raise substantial doubt regarding the Company&rsquo;s ability to continue as a going
concern. We have evaluated the conditions or events that raise substantial doubt about the Company&rsquo;s ability as a going
concern within one year of issuance of the consolidated financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
the Company is continuing operations and generating revenues, the Company&rsquo;s cash position is not significant enough to support
the Company&rsquo;s daily operations. To fund operations and reduce the working capital deficit, we intend to raise additional
funds through public or private debt and/or equity offerings. During 2020, the Company raised $124,031 from a sale of a repurchase
option to fund operations. Management believes that the actions presently being taken to further implement its business plan and
generate revenues provide the opportunity for the Company to continue as a going concern, however, such are not guaranteed. While
the Company believes in the viability of its strategy to generate revenues and in its ability to raise additional funds, there
can be no assurances to that effect, nor can there be assurance that such funds will be at acceptable terms. As of the date of
these consolidated financial statements, the Company has not finalized a commitment for additional capital. The ability of the
Company to continue as a going concern is dependent upon our ability to further implement its business plan and generate revenues
and cash flows. The consolidated financial statements do not include any adjustments that might be necessary if the Company is
unable to continue as a going concern.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
4 &ndash; PATENTS AND PROPERTY AND EQUIPMENT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Patents</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 22, 2017, AppTech executed an Amendment to Asset Purchase Agreement with GlobalTel Media, Inc. In connection with the asset
purchase agreement, 5,000,000 shares of common stock were issued to GlobalTel Media, Inc. The Company valued the common stock
issuance at $1,000,000 based on the closing market price of the Company&rsquo;s common stock on the date in which the performance
was complete. This amendment revived the original asset purchase agreement dated December 4, 2013 to purchase the assets of GlobalTel
Media, Inc. (AppTech and GlobalTel agree that the asset purchase agreement dated September 30, 2015 is null and void), which include,
but is not limited to, all intellectual property, United States Patent Trademark Office (&ldquo;USPTO&rdquo;) issued patents,
enterprise-grade, patent protected software and intellectual property for advanced messaging incorporating secure payments, databases,
documentation, copyrights, trademarks, registrations, and all current development work in process of USPTO application approval;
more specifically but not limited to USPTO 8,073,895 &amp; 8,572,166 &ldquo;System and Method for Delivering Web Content to a
Mobile Device&rdquo;, USPTO 8,315,184 &ldquo;Computer to Mobile Two-Way Chat System and Method&rdquo;, and USPTO 8,369,828 &ldquo;Mobile-to-Mobile
Payment System and Method&rdquo;. GlobalTel&rsquo;s technology focuses on SMS text-based applications, social media and mobile
payment. The USPTO assigned the patents to AppTech on July 25, 2017. AppTech, as part of the various agreements, agreed to pay
$1,600,000 which included an assumption of certain liabilities, including costs incurred to continue development of the patents,
as well as guaranteed payment of 25% of the net proceeds on revenue created by the patents up to $26,600,000. As of December 31,
2019 and 2018, amounts included in accounts payable related to the assumption of liabilities in connection with the patents were
$415,000 and $470,000, respectively. The Company has expensed the cost of the patents as research and development costs as the
future estimated cash flow expected cannot be reasonably estimated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Property
and Equipment</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Property
and equipment at December 31, 2019 and 2018 consisted of the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">December 31, 2019</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">December 31, 2018</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; text-align: left; padding-left: 0.25pt">Property and equipment</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">24,254</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">24,254</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 0.25pt">Less: Accumulated depreciation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(24,254</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(24,189</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 0.25pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">65</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Property
and equipment primarily consists of computer equipment which is depreciated over five years. Depreciation expense for the years
ended December 31, 2019 and 2018 was $65 and $129, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
5 &ndash; ACCRUED LIABILITIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accrued
liabilities as of December 31, 2019 and 2018 consist of the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">December 31, 2019</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">December 31, 2018</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Accrued interest &ndash; related parties</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">943,356</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">830,260</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Accrued interest &ndash; third parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,215,699</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,059,595</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Accrued residuals</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,064</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,509</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -7.5pt; padding-left: 7.75pt">Accrued merchant equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">91,023</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">105,900</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; text-indent: -7.5pt; padding-left: 7.75pt">Other</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">45,338</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">162,545</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: -7.5pt; padding-left: 20.25pt">Total accrued liabilities</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2,334,480</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2,194,809</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Accrued
Interest</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes
payable and convertible notes payable incur interest at rates between 10% and 15%, per annum. The accrued interest in most cases
is currently in technical default due to the notes being past their maturity date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Accrued
Residuals</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company pays commissions to independent agents which refer merchant accounts. The amounts payable to these independent agents
is based upon a percentage of the amounts processed on a monthly basis by these merchant accounts.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Accrued
Merchant Equity Liability</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company provided all merchants the opportunity to earn shares of the Company&rsquo;s common stock through their Merchant Equity
Program (the &ldquo;Program&rdquo;). Under the Program, the merchant earned 1% of their total Visa/MasterCard volume processed
during the first year of their contract. For example, if a merchant processes $1.0 million in credit card charges, the merchant
will receive 10,000 shares of the Company&rsquo;s common stock. The merchant must process with the Company for a period of three
years for the shares to vest. All merchants became fully vested when the Company ended the program effective December 31, 2015.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
merchants in which the shares of common stock are not known as they are within the one-year period, the Company estimates on a
quarterly basis as to the estimated amount of shares based upon the expected amount to be processed by the merchant on an annual
basis. At the end of the first year, when the number of shares issuable is known, the Company makes an adjustment to the value
of the shares, if needed.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company accounts for the value of the shares under the program as a sales incentive and thus the amounts in connection with the
Program are recorded as a reduction to revenues. As of December 31, 2019, the Company has an obligation to issue approximately
776,000 shares of the Company&rsquo;s common stock issuable under the Program. During the years ended December 31, 2019 and 2018,
the Company issued 37,193 and 55,094 shares of common stock relieving $14,877 and $13,504 in liability under the Program, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
6 &ndash; NOTES PAYABLE AND CONVERTIBLE NOTES PAYABLE</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company funds operations through cash flows generated from operations and the issuance of loans and notes payable. The following
is a summary of loans and notes payable outstanding as of December 31, 2019 and 2018. Related parties noted below are either members
of management, board of directors, significant shareholders or individuals in which have significant influence over the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Loans
Payable &ndash; Related Parties</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2019 and 2018, the Company obtained $39,319 and $41,047 loans payable from related parties, net. As of December 31, 2019 and 2018,
the balance of the loans payable was $93,401 and $54,082, respectively. The loans payable are due on demand, unsecured and non-interest
bearing as there are no formal agreements executed.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Subordinated
Notes Payable</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2016, the Company issued $350,000 in subordinated notes payable to third parties. The subordinated notes payable were due in 30
to 180 days and incurred interest at 10% per annum. As of December 31, 2019 and 2018, accrued interest related to the subordinated
notes was $118,545 and $83,545, respectively. The Company is currently in default of the subordinated note agreements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Convertible
Notes Payable</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2017, the Company received $222,000 in convertible notes payable from related parties. The convertible notes payable are unsecured,
were due in 180 days, incur interest at 10% per annum and are convertible at $0.10 per share. As of December 31, 2019 and 2018,
accrued interest related to the convertible notes was $53,988 and $31,787, respectively. On the date of the agreement, Management
calculated the beneficial conversion feature in connection with the convertible notes payable and recorded a discount of $222,000.
The Company amortized the discount over the term of the convertible notes payable of 180 days. During the years ended December
31, 2019 and 2018, the Company amortized $-0- and $100,258 to interest expense related to the discount, respectively. The Company
is currently in default on the convertible notes payable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2015, the Company issued $50,000 in convertible notes payable. The convertible notes payable are unsecured, were due in nine months,
incur interest at 10% per annum and are convertible at $1.00 per share. As of December 31, 2019 and 2018, the accrued interest
related to the convertible notes was $20,833 and $15,833, respectively. The Company is currently in default on the convertible
note payable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2014, the Company issued $400,000 in convertible notes payable. The convertible notes payable are unsecured, due in periods ranging
up to one year, incurring interest between 10% to 12% per annum and are convertible at prices ranging from $0.33 to $1.00 per
share. In addition, the Company issued 400,000 shares of common stock in connection with the convertible notes payable. The Company
had the obligation to repurchase the 400,000 shares of common stock at $1.00 per share within one year of the note issuance date.
As of December 31, 2019 and 2018, the Company held the obligation to repurchase the shares for $400,000. As of December 31, 2019
and 2018, the accrued interest related to the convertible notes was $186,083 and $145,083, respectively. The Company is currently
in default of the note agreements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2008 and 2009, the Company issued $320,000 in convertible notes payable, of which $150,000 was from related parties. The convertible
notes payable are currently due on demand, incur interest at 15% per annum, and convertible at $0.60 per share. As of December
31, 2019 and 2018, accrued interest related to the convertible notes was $516,013 and $468,012 of which $243,375 and $220,875,
respectively, was due to related parties. The Company is currently in default of the notes payable agreements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Notes
Payable</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2016, the Company issued $143,000 in notes payable to third parties. The notes payable were due in ninety days or less. During
2019, the Company paid $36,000 in notes payable. The Company is currently in default of the note agreements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2007 and 2008, the Company entered into notes payable with a related party for $46,000 in proceeds. The notes payable were due
on demand and incurred interest at 12% per annum. These were combined into a single note agreement in 2014. As of December 31,
2019 and 2018, the balance on the note payable was $88,136 and accrued interest related to the note payable was $49,243 and $39,921,
respectively. The Company is currently in default of the note payable agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2007, the Company entered into note payable with a third party for $128,000 in proceeds. Under the terms of the agreement the
holder received a flat interest amount of $37,496. The Company is currently in default of the note payable agreement and the entire
amount of $37,496 has been included within accrued interest. Since the note payable did not incur interest, the Company imputed
interest at $12,800 and $12,800, respectively, which represented an interest rate of 10% per annum during the years ended December
31, 2019 and 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2008, the Company entered into a note payable with a third party for $10,000 in total proceeds. The note payable is currently
in default and have a flat interest amount due of $21,000. As of December 31, 2019 and 2018, the Company was in default of the
note agreement and the entire amount of $21,000 has been included within accrued interest. Since the notes payable do not incur
interest, the Company imputed interest at $1,000 and $1,000, respectively, which represented an interest rate of 10% per annum
during the years ended December 31, 2019 and 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2008, the Company entered into notes payable with a third party for $26,000 in total proceeds. The notes payable have a flat interest
amount due of $80,000. During 2015, the Company received another $50,000 from the third party. During 2017, the Company entered
into an agreement whereby they would repay the principal and accrued interest in the amount of $145,000 by April 4, 2018 and issue
the holders 800,000 shares of common stock. The Company recorded the fair market value of the common stock issued at $336,000
based on the date of issuance as interest expense. Other than the issuance of shares of common stock, the Company did not perform
under the agreement. The Company is currently in default of the note agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2007, the Company entered into note payable with a third party for $221,800 in proceeds. The note payable is currently in default
and incurs interest at 10% per annum. On September 30, 2013, the holder received an arbitration settlement for the principal and
accrued interest. As of December 31, 2019 and 2018, the Company was in default of the arbitration settlement. As of December 31,
2019 and 2018, accrued interest related to the note payable was $429,861 and $389,580, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2007, the Company entered into note payable with a significant shareholder for $58,600 in proceeds. The note payable is currently
due on demand and incurs interest at 10% per annum. As of December 31, 2019 and 2018, accrued interest related to the note payable
was $70,513 and $64,653, respectively. The Company is currently in default of the note agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Two
significant shareholders funded the Company&rsquo;s operations through notes payable in primarily 2009 and 2010 and continue to
support operations on a limited basis. The notes payable incur interest at 10% per annum and were due on December 31, 2016. The
Company is currently in default of the note agreements. As of December 31, 2019 and 2018, the aggregate balance of the notes payable
was $620,356 and accrued interest was $575,480 and $512,945, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
7 - COMMITMENTS AND CONTINGENCIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Operating
Lease</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company entered into a lease agreement for office space commencing December 1, 2015 through November 30, 2018. The lease was guaranteed
by various members of Management. The monthly rent under the lease agreement is as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="width: 89%; padding: 0.25pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">December
    1, 2017 November 30, 2018</FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">$</FONT></TD>
    <TD STYLE="width: 10%; padding: 0.25pt; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">7,072</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Company entered into a lease agreement for office space commencing November 15, 2018. The monthly rent under the lease agreement
is as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="width: 89%; padding: 0.25pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">November
    15, 2018 November 14, 2019</FONT></TD>
    <TD STYLE="width: 1%; padding: 0.25pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">$</FONT></TD>
    <TD STYLE="width: 10%; padding: 0.25pt; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">5,443</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="padding: 0.25pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">November
    15, 2019 November 14, 2020</FONT></TD>
    <TD STYLE="padding: 0.25pt; font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">$</FONT></TD>
    <TD STYLE="padding: 0.25pt; font: 12pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">5,606</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
month December 15, 2018 &ndash; January 14, 2019 is a free rent month per the terms of the agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
rent expense for the years ended December 31, 2019 and 2018 was $84,763 and $101,663, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 29, 2018, the Company entered into an option to purchase its current facility under the terms and conditions of the lease
along with a $50,000 deposit. The option to purchase the facility was never executed and per the terms of the September 26, 2019
settlement and mutual release agreement the $50,000 deposit will be returned, with $25,000 returned on October 8, 2019 and the
balance of $25,000 was returned on February 18, 2020.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT>Per the terms of the lease agreement for office space, the lessor
executed an option to terminate the lease effective February 18, 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">See
Note 10 for subsequent events.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Litigation</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Shareholder
Lawsuit</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March 2016, a significant shareholder (&ldquo;Plaintiff&rdquo;) of the Company filed a lawsuit against the Company in the state
of California alleging breach of contract, fraud and negligent misrepresentation based on supposed oral promises in 2013 to give
Plaintiff&rsquo;s company shares in exchange for stocks in another company and a 2014 consulting agreement. The Company strongly
disputed all claims made in the lawsuit. On April 20, 2017, the Company filed an answer that denied each and every purported allegation
and cause of action and further denied that they caused any damage or loss. The Company reached an agreement resulting in a voluntary
dismissal of the civil case on July 5, 2017. The Plaintiff was not able to fulfill the proper documentation within the allotted
180 days and the 3,450,000 shares of AppTech Corp stock were properly cancelled in 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Former
Shareholders Lawsuits</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
April 2014, a shareholder of AppTech filed a lawsuit against the Company in the State of Washington claiming breach of contract
related to the sale / transfer of unregistered shares at the time of AppTech acquisition. On August 13, 2014, the Company notified
the transfer agent and placed a &rsquo;Stop Order&rsquo; on the shares. The shareholder claims that the 2.5 million shares received
are unrestricted and should be reflected as such. On August 19, 2014, the Company filed a motion to dismiss the lawsuit. The lawsuit
was dismissed on October 31, 2014.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
November 2017, two shareholders of AppTech, one who previously filed the 2014 lawsuit in the State of Washington, filed another
lawsuit against the Company in the State of California, claiming the same accusations as the previously filed lawsuit which was
dismissed. The lawsuit has been transferred to the United States District Court for the Southern District of California. The Company
filed the defendants answer, affirmative defenses and counter claims. Management believes that the Plaintiff misrepresented and
misled AppTech during the merger. The court has encouraged the parties to settle. Even though the Company believes the lawsuit
is without merit and will vigorously defend, the Company has made several offers to settle. On December 19, 2019, the Company
entered into a settlement and release agreement. The Company has recorded the liability as of December 31, 2019 for the total
obligation of $240,000 to be paid out over three years beginning February 15, 2020. The 2019 impact is recorded in other expenses.
A stipulation for dismissal of action has been filed with the courts. The first payment of $20,000 due February 15, 2020 has been
paid timely.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Former
Board of Director Member Lawsuit</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
July 2018, a former Board of Director&rsquo;s member filed a lawsuit, in the United States District Court for the Southern District
of California, alleging various claims for relief. The Company reached an agreement, with no consideration paid that resulted
in a voluntary dismissal with prejudice and dismissed all claims on November 14, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Former
Landlord Lawsuit</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
September 2018, the landlord for our former office space lease filed a limited civil lawsuit against the Company in the State
of California. The Company reached an agreement that resulted in a stipulation for judgment on October 28, 2018. The stipulated
judgment was for $42,432 including attorney fees and court costs plus interest for which the Company recorded as a liability as
of December 31, 2018. The stipulated judgment was paid in full on August 16, 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Patent
Acquisition Lawsuit</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
September 2018, a complaint was filed in San Diego superior court for a breach of contract arising from a written agreement for
the purchase of a judgment to which AppTech was not a party. The purchase of the judgment was part of the transaction to acquire
the patents. AppTech substantially performed under the agreement but the second agreement to extend the final payment was executed
under duress. On October 26, 2018, the Company filed an answer that denied each and every purported allegation and cause of action
and further denied that they caused any damage or loss. On December 3, 2019, the Company entered into a conditional settlement
providing the terms of the conditional settlement have been completed by October 1, 2020. The conditional settlement amount of
$150,000 is paid in monthly installments of $15,000. The installments, due the end of each month, have been paid through February
2020.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Significant
Contract</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
January 2019, the Company entered into an agreement with a broker dealer to provide capital raising activities. Under the terms
of the agreement the broker dealer is to make a minimum of $90,000 in advisory fees. In addition, there are various other provisions
within the agreement which include a 10% placement fee, warrants to purchase common stock, a 4% transaction fee, etc.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Employee
versus Contractor Classification</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company compensates various individuals as consultants. Annually, these consultants are issued Form 1099s for amounts paid to
them. In addition, these consultants do not have arrangements in which specify compensation payable to them. The Company risks
potential tax and legal actions if these consultants are deemed to be employees by governmental agencies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
8 &ndash; STOCKHOLDERS&rsquo; DEFICIT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Series
A Preferred Stock</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company is authorized to issue 100,000 shares of $0.001 par value Series A preferred stock (&ldquo;Series A&rdquo;). There were
fourteen (14) shares of Series A preferred stock outstanding as of December 31, 2019 and 2018. The holders of Series A preferred
stock are entitled to one vote per share on an &ldquo;as converted&rdquo; basis on all matters submitted to a vote of stockholders
and are not entitled to cumulate their votes in the election of directors. The holders of Series A preferred stock are entitled
to any dividends that may be declared by the Board of Directors out of funds legally available, therefore on a pro rata basis
according to their holdings of shares of Series A preferred stock, on an as converted basis. In the event of liquidation or dissolution
of the Company, holders of Series A preferred stock are entitled to share ratably in all assets remaining after payment of liabilities
and have no liquidation preferences. Holders of Series A preferred stock have a right to convert each share of Series A into 780
shares common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Common
Stock</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company is authorized to issue 1,000,000,000 shares of $0.001 par value common stock. There were 84,153,825 and 86,797,132, respectively,
shares of common stock outstanding as of December 31, 2019 and 2018. The holders of common stock are entitled to one vote per
share on all matters submitted to a vote of stockholders and are not entitled to cumulate their votes in the election of directors.
The holders of common stock are entitled to any dividends that may be declared by the board of directors out of funds legally
available, therefore subject to the prior rights of holders of any outstanding shares of preferred stock and any contractual restrictions
against the payment of dividends on common stock. In the event of liquidation or dissolution of the Company, holders of common
stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation preferences of any
outstanding shares of preferred stock. Holders of common stock have no preemptive or other subscription rights and no right to
convert their common stock into any other securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the years ended December 31, 2019 and 2018, the Company issued 454,500 and 1,758,000, respectively, shares of common stock to
several consultants in connection with business development and professional services. The Company valued the common stock issuances
at $91,414 and $1,547,388, respectively, based upon the closing market price of the Company&rsquo;s common stock on the date in
which the performance was complete. The amounts were expensed to general and administrative expenses on the accompanying consolidated
statements of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the years ended December 31, 2019 and 2018, the Company issued 40,000 and 50,000 shares of common stock to the landlord in lieu
of rent, respectively. The Company valued the common stock issuance at $18,400 and $25,500, respectively, based upon the closing
market price of the Company&rsquo;s common stock on the date in which the performance was complete. The amount was expensed to
general and administrative expenses on the accompanying consolidated statements of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">See
Note 4 for common stock issued in connection with the acquisition of patents.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">See
Note 5 for common stock issued for the merchant equity liability.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">See
Note 6 for common stock issued for interest expense.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Common
Stock Repurchase Option</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
May 1, 2018, the Company entered into a common stock repurchase option agreement to purchase 500,000 shares of common stock from
a third party at $0.10 per share. The Company assigned its rights to the repurchase option agreement to a third party in exchange
for compensation. The common stock repurchase options were exercised on May 15, 2018 and March 8, 2019 for which the Company received
$37,500 and $123,750, respectively, in proceeds from which was recorded as additional paid-in capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 3, 2019, the Company entered into a common stock repurchase option agreement to purchase 2,000,000 shares of common stock
from the former President of the Company at $0.05 per share. The Company assigned its rights to the repurchase option agreement
to a third party in exchange for compensation. The common stock repurchase option was exercised on June 3, 2019 and December 20,
2019 for which the Company received $500,000 and $112,500 in proceeds for which was recorded as additional paid-in capital, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
9 &ndash; INCOME TAXES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s net deferred tax assets at December 31, 2019 and 2018 is approximately $2,037,000 and $1,781,000, respectively,
which primarily consists of net operating loss carry forwards and various accruals. As of December 31, 2019 and 2018, the Company
provided a 100% valuation allowance against the net deferred tax assets. During the years ended December 31, 2019 and 2018, the
valuation allowance increased by approximately $256,000 and $173,000, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
December 31, 2017, the applicable federal rate used in calculating the deferred tax provision was 21%. The Tax Cuts and Jobs Act
reduced the federal corporate tax rate used in calculating the deferred income tax liability from 34% to 21%, as a result the
Company has adjusted its deferred income tax liabilities for this reduction. This resulted in a one-time reduction of approximately
$654,000 to the net deferred tax assets and corresponding valuation allowance for the year ended December 31, 2017.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company is subject to tax in the United States (&ldquo;U.S.&rdquo;) and files tax returns in the U.S. Federal jurisdiction and
California state jurisdiction. The Company is subject to U.S. Federal, state and local income tax examinations by tax authorities
for all periods starting in 2014. The Company currently is not under examination by any tax authorities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
10 &ndash; SUBSEQUENT EVENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management
has evaluated subsequent events pursuant to the requirements of ASC Topic 855 and has determined that no material subsequent events
exist other than those disclosed below.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Operating
Lease</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company entered into a lease agreement for office space commencing February 8, 2020 through January 31, 2025.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 22, 2020, the Company also entered into a six-month option to purchase the facility under the terms and conditions of
the lease.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Stock
Based Compensation</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 26, 2020, The Company issued 175,000 shares of Common Stock to a consultant in connection with business development. The
Company valued the Common Stock at $148,750 based on the closing market price of the Company&rsquo;s Common Stock on the date
in which the performance was complete.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Common
Stock Repurchase Option</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 23, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 300,000 shares of
common stock from a third party at $0.05 per share. The Company assigned its rights to the repurchase option agreement to a third
party in exchange for compensation. The common stock repurchase options were exercised on January 26, 2020 for which the Company
received $98,750 in proceeds for which was recorded as additional paid-in capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 26, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 266,115 shares of
common stock from a third party at $0.05 per share. The Company assigned its rights to the repurchase option agreement to a third
party in exchange for compensation. The common stock repurchase option was exercised on February 27, 2020 for which the Company
received $25,281 in proceeds for which was recorded as additional paid-in capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 18, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 250,000 shares of common
stock from a third party at $0.05 per share. The Company assigned its rights to the repurchase option agreement to a third party
in exchange for compensation. The common stock repurchase option was exercised on March 19, 2020 for which the Company received
$62,500 in proceeds for which was recorded as additional paid-in capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 30, 2020, the World Health Organization declared the coronavirus outbreak a &ldquo;Public Health Emergency of International
Concern&rdquo; and on March 10, 2020, declared it to be a pandemic. Actions taken around the world to help mitigate the spread
of the coronavirus include restrictions on travel, and quarantines in certain areas, and forced closures for certain types of
public places and businesses. The coronavirus and actions taken to mitigate it have had and are expected to continue to have an
adverse impact on the economies and financial markets of many countries, including the geographical area in which the Company
operates. Since we derive our revenues from processing of purchases from our merchant services clients, a downturn in economic
activity, such as associated with the current coronavirus pandemic, could reduce the volume of purchases we process, and thus
our revenues. In addition, such a downturn could cause our merchant customers to cease operations permanently decreasing our payment
processing unless new customers are found. We may also face additional difficulty in raising capital during an economic downturn.
The effects of the potential impact cannot be estimated at this time.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
it is reasonably possible that the estimates made in the financial statements have been, or will be materially and adversely impacted
in the near term as a result of these conditions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">See
Note 7 for additional subsequent events.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 4.1pt 0 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="balance2"></A><B>APPTECH
CORP. AND SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 3.85pt 0 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CONSOLIDATED
BALANCE SHEETS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 3.85pt 0 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt"><B>SEPTEMBER
30, 2020 and DECEMBER 31, 2019</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 4.1pt 0 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(UNAUDITED)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 4.1pt 0 0; text-align: left; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">September 30, 2020</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">December 31, 2019</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-left: 7.5pt">ASSETS</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; padding-left: 20pt">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">46,316</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">24,159</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,227</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29,836</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Deposit escrow</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Security deposit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,948</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 30pt">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84,543</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84,943</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Right of use asset</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">265,120</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Security deposit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">7,536</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 7.5pt">TOTAL ASSETS</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">357,199</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,943</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 7.5pt">LIABILITIES AND STOCKHOLDERS&rsquo; DEFICIT</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,862,643</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,707,878</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,552,712</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,334,480</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Right of use liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,035</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Stock repurchase liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">430,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">430,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Loans payable related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">51,401</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">93,401</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Convertible notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">620,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">620,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Convertible notes payable related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">372,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">372,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,172,281</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,104,081</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Notes payable related parties</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">708,493</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">708,493</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 30pt">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,819,565</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,370,333</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 30pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Long-term liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">160,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Right of use liability</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">238,174</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 30pt">Total long-term liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">238,174</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">160,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 30pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 7.5pt">TOTAL LIABILITIES</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,057,739</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">7,530,333</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Commitments and contingencies (Note 8)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Stockholders&rsquo; Deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Series A preferred stock; $0.001 par value; 100,000 shares authorized; 14 shares issued and outstanding at September 30, 2020 and December 31, 2019</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Common stock, $0.001 par value; 1,000,000,000 shares authorized; 87,821,825 and 84,153,825 and outstanding at September 30, 2020 and December 31, 2019, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">87,822</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84,154</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,870,457</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,230,869</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 7.5pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(43,658,819</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(40,760,413</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 30pt">Total stockholders&rsquo; deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(7,700,540</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(7,445,390</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 7.5pt">TOTAL LIABILITIES AND STOCKHOLDERS&rsquo; DEFICIT</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">357,199</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,943</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 4.1pt 0 0; text-align: left; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">See
accompanying notes to the consolidated financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="sop2"></A><B>APPTECH
CORP. AND SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CONSOLIDATED
STATEMENTS OF OPERATIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt"><B>FOR
THE THREE MONTHS AND THE NINE MONTHS ENDED SEPTEMBER 30, 2020 and 2019</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(UNAUDITED)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">For the Three Months Ended September 30,</TD><TD>&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">For the Nine Months Ended September 30,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2020</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2020</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2019</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; padding-left: 7.5pt">Revenues</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">105,357</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">66,532</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">241,367</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">190,411</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 7.5pt">Cost of revenues</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">48,759</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">26,548</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">103,721</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">75,099</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">56,598</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,984</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">137,646</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">115,312</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">General and administrative, including stock based compensation of $1,066,386, $46,000, $2,357,125 and $89,134, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,089,808</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">315,321</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,781,912</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">743,210</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Research and development</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,999</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">33,212</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">49,250</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">62,350</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 30pt">Total operating expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,092,807</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">348,533</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,831,162</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">805,560</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,036,209</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(308,549</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,693,516</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(690,248</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Other income (expenses)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 20pt">Forgiveness of Debt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Interest expense</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(71,723</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(71,087</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(213,890</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(217,722</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 30pt">Total other expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(71,723</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(71,087</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(204,890</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(217,722</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Loss before provision for income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,107,932</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(379,636</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,898,406</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(907,970</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 7.5pt">Provision for income taxes</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 7.5pt">Net loss</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,107,932</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(379,636</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(2,898,406</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(907,970</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 7.5pt">Basic and diluted net loss per common share</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.01</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.00</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.03</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.01</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 7.5pt">Weighted-average number of shares used basic and diluted per share amounts</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">86,984,021</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,073,281</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">85,941,115</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,482,903</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.9pt 0 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">See
accompanying notes to the consolidated financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 2.9pt 0 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="equity2"></A><B>APPTECH
CORP. AND SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5pt 0 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CONSOLIDATED
STATEMENTS OF STOCKHOLDERS&rsquo; DEFICIT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5pt 0 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt"><B>FOR
THE THREE MONTHS AND THE NINE MONTHS ENDED SEPTEMBER 30, 2020 and 2019</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5pt 0 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(UNAUDITED)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5pt 0 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="text-align: center; border-bottom: Black 1pt solid">Series A Preferred</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">Common Stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Additional Paid-</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Accumulated</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">Stockholders&rsquo;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Shares</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">Amount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Shares</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Amount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">in Capital</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid">Deficit</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 37%; padding-left: 7.5pt">Balance June 30, 2019</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; text-align: right">14</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; text-align: right">83,946,632</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">83,947</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">33,030,119</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">(39,945,538</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 5%">$(6,831,472)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(379,635</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(379,635)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Imputed interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,450</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">3,450</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Common stock issued for merchant equity program</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,193</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,840</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">14,877</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Common stock issued for services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">115,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">115</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45,885</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">46,000</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 7.5pt">Proceeds from sale of repurchase option</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 7.5pt">Balance September 30, 2019</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">14</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,098,825</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,099</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">33,094,294</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(40,325,173</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">$(7,146,780)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.5pt">Balance December 31, 2018</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">86,797,132</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">86,797</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">32,284,735</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(39,417,203</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">$(7,045,671)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(907,970</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(907,970)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Imputed interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,350</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">10,350</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Common stock issued for subscriptions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">275,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">275</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">68,475</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">68,750</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Common stock issued for merchant equity program</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,193</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,840</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">14,877</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Common stock issued for services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">439,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">440</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">88,694</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">89,134</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Common stock cancelled</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,450,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,450</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,450</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 7.5pt">Proceeds from sale of repurchase option</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">623,750</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">623,750</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 7.5pt">Balance September 30, 2019</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">14</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,098,825</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">84,099</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">33,094,294</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(40,325,173</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">$(7,146,780)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.5pt">Balance June 30, 2020</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">86,677,825</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">86,678</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">34,731,765</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(42,550,887</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">$(7,732,444)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,107,932</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(1,107,932)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Imputed interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,450</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">3,450</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Common stock issued for services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,044,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,044</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">924,397</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">925,441</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Common stock issued for services with warrant exercise</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">165,845</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">165,945</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 7.5pt">Proceeds from sale of repurchase option</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">45,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">45,000</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 7.5pt">Balance September 30, 2020</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">14</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">87,821,825</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">87,822</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">35,870,457</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(43,658,819</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">$(7,700,540)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 7.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 7.5pt">Balance December 31, 2019</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84,153,825</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">84,154</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">33,230,869</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(40,760,413</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">$(7,445,390)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,898,406</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(2,898,406)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Imputed interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,350</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">10,350</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Common stock issued for services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,568,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,568</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,212,612</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2,216,180</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Common stock issued for services with warrant exercise</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">165,845</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">165,945</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 7.5pt">Proceeds from sale of repurchase option</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">250,781</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">250,781</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 7.5pt">Balance September 30, 2020</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">14</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">87,821,825</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">87,822</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">35,870,457</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(43,658,819</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">$(7,700,540)</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">See
accompanying notes to the consolidated financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="cash2"></A><B>APPTECH
CORP. AND SUBSIDIARIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CONSOLIDATED
STATEMENTS OF CASH FLOWS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt"><B>FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2020 and 2019</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(UNAUDITED)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">September 30, 2020</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">September 30, 2019</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">CASH FLOWS FROM OPERATING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 45%; text-align: left; padding-left: 20pt">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(2,898,406</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">(907,970</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Adjustments to reconcile net loss to net cash used in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 30pt">Stock issued for services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,063,680</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">89,134</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 30pt">Stock issued for exercise of warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">140,945</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 30pt">Imputed interest on notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,350</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,350</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 30pt">Depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">49</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 30pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,391</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,406</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 30pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">147,265</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,687</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 30pt">Accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">218,233</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">211,920</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 30pt">Right of use asset and liability</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">23,089</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 40pt">Net cash used in operating activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(303,235</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(593,236</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 40pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">CASH FLOWS FROM INVESTING ACTIVITIES</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Deposit escrow</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(50,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Security deposit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,589</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 30pt">Net cash provided by (used in) investing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">23,411</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(50,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 30pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">CASH FLOWS FROM FINANCING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Proceeds on loans payable - related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">750</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">120,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Payments on loans payable - related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(42,750</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(41,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Proceeds on note payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">68,200</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Payments on notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(36,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Proceeds from sale of repurchase option</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">250,781</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">623,750</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 20pt">Proceeds from exercise of warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Proceeds from sale of common stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">68,750</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 30pt">Net cash provided by financing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">301,981</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">735,500</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 30pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Changes in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,157</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">92,264</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Cash and cash equivalents, beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">24,159</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,384</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 20pt">Cash and cash equivalents, end of period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">46,316</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">93,648</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 20pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Supplemental disclosures of cash flow information:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 30pt">Cash paid for interest</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,805</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 30pt">Cash paid for income taxes</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 30pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">NON CASH INVESTING AND FINANCING ACTIVITIES</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 20pt">Common stock issued for conversion of accounts payable</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">152,500</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 20pt">Common stock issued for merchant equity liability</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">14,877</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">See
accompanying notes to the consolidated financial statements.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt"><B>&nbsp;</B></FONT><B><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="notes2"></A>APPTECH
CORP. AND SUBSIDIARIES</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTES
TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
1 - ORGANIZATION AND DESCRIPTION OF BUSINESS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">AppTech
Corp. (&ldquo;AppTech&rdquo; or the &ldquo;Company&rdquo;) is a Wyoming Corporation incorporated on July 2, 1998.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">AppTech
Corp. is a FinTech company providing electronic payment processing technologies and merchant services. This includes credit card
processing, Automated Clearing House (&ldquo;ACH&rdquo;) processing, gift and loyalty cards and e-commerce. The Company expanded
its core services to include global Short Messaging Service (&ldquo;SMS&rdquo;) patented text messaging and secure mobile payments.
The patented two-way text chat platform enables secure SMS services including mobile payments, notifications, authentication,
marketing, information queries and reporting. Other services include digital marketing, lead generation, mobile app development,
and intellectual property rights development.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Basis
of Presentation </U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s consolidated financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America (&ldquo;U.S. GAAP&rdquo;). Also see Note 3.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Accounting
Method</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accompanying unaudited financial statements of AppTech Corp. have been prepared in accordance with Accounting Principles Generally
Accepted in the United States of America (&ldquo;GAAP&rdquo;) for interim financial information and in accordance with Rule 8-03
of Regulation S-X. Certain information and disclosures normally included in the annual financial statements prepared in accordance
with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments,
consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. These interim financial
statements should be read in conjunction with the audited annual financial statements of the Company as of and for the year ended
December 31, 2019. The results of operations for the three months and nine months ended September 30, 2020 are not necessarily
indicative of the results that may be expected for the full year.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Principles
of Consolidation</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s accounts include financials of the Company and its wholly owned subsidiaries, Transcendent One, Inc. and TransTech
One, LLC. All significant inter-company transactions have been eliminated in consolidation. The operations of Transcendent One,
Inc. and TransTech One, LLC are insignificant and the Company dissolved the subsidiaries on October 8, 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Use
of Estimates</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during
the reporting period. Significant estimates include the estimated liabilities related to various vendors in which communications
have ceased, contingent liabilities, and realization of tax deferred tax assets. Actual results could differ from those estimates.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Concentration
of Credit Risk</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits of $250,000
per institution that pays Federal Deposit Insurance Corporation (&ldquo;FDIC&rdquo;) insurance premiums. The Company has never
experienced any losses related to these balances.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accounts receivable from merchant services are paid by the financial institutions on a monthly basis. The Company currently uses
four financial institutions to service their merchants for which represented 100% of accounts receivable as of September 30, 2020
and 2019. The loss of one of these financial institutions would not have a significant impact on the Company&rsquo;s operations
as there are additional financial institutions available to the Company. For the nine months ended September 30, 2020 and 2019,
the one merchant (customer) represented approximately 36% and 40% of the total revenues, respectively. The loss of this customer
would have significant impact on the Company&rsquo;s operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Cash
and Cash Equivalents</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company classifies its highly liquid investments with maturities of three months or less at the date of purchase as cash equivalents.
Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designations
of each investment as of the balance sheet date for each reporting period. The Company classifies its investments as either short-term
or long-term based on each instrument&rsquo;s underlying contractual maturity date. Investments with maturities of less than 12
months are classified as short-term and those with maturities greater than 12 months are classified as long-term. The cost of
investments sold is based upon the specific identification method.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Accounts
Receivable and Allowance for Doubtful Accounts</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounts
receivable is recorded net of an allowance for doubtful accounts, if needed. The Company considers any changes to the financial
condition of its financial institutions used and any other external market factors that could impact the collectability of its
receivables in the determination of its allowance for doubtful accounts. The Company does not expect to have write-offs or adjustments
to accounts receivable which could have a material adverse effect on its consolidated financial position, results of operations
or cash flows as the portion which is deemed uncollectible is already taken into account when the revenue is recognized.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Revenue
Recognition</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Financial Accounting Standards Board (&ldquo;FASB&rdquo;) issued Accounting Standards Update (&ldquo;ASU&rdquo;) No. 2014-09,
codified as Accounting Standards Codification (&ldquo;ASC&rdquo;) 606 Revenue from Contracts with Customers, which provides a
single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The Company adopted
ASC 606 effective January 1, 2019 using modified retrospective basis and the cumulative effect was immaterial to the consolidated
financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company provides merchant processing solutions for credit cards and electronic payments. In all cases, the Company acts as an
agent between the merchant which generates the credit card and electronic payments, and the bank which processes such payments.
The Company&rsquo;s revenue is generated on services priced as a percentage of transaction value or a specified fee transaction,
depending on the card or transaction type. Revenue is recorded as services are performed which is typically when the bank processes
the merchant&rsquo;s credit card and electronic payments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company provides various Cloud services to business clients. Revenues generated from the services as agreed upon in a Cloud Service
Agreement. The revenue is recorded as the services are performed and billed in advance on a monthly basis. Revenues from these
services represent less than 5% of the Company&rsquo;s total revenues.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consideration
paid to customers, such as amounts earned under our customer equity incentive program, are recorded as a reduction to revenues.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Fair
Value of Financial Instruments</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ASC
820, Fair Value Measurements and Disclosures defines fair value 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 also 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
standard describes three levels of inputs that may be used to measure fair value:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
fair value hierarchy prioritizes the inputs used in valuation techniques into three levels as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 6%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 105%"><B>Level
    1</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 93%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 105%">Observable
    inputs &ndash; unadjusted quoted prices in active markets for identical assets and liabilities;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 105%"><B>Level
    2</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 105%">Observable
    inputs &ndash; other than the quoted prices included in Level 1 that are observable for the asset or liability through corroboration
    with market data; and</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 105%"><B>Level
    3</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 105%">Unobservable
    inputs &ndash; includes amounts derived from valuation models where one or more significant inputs are unobservable.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s financial instruments consist of cash and cash equivalents, accounts receivable, vendor deposits, accounts payable,
accrued expenses, etc. The carrying value of these assets and liabilities is representative of their fair market value, due to
the short maturity of these instruments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Research
and Development</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
accordance with ASC 730, Research and Development (&ldquo;R&amp;D&rdquo;) costs are expensed when incurred. R&amp;D costs include
costs of acquiring patents and other unproven technologies, contractor fees and other costs associated with the development of
the SMS short code texting platform, contract and other outside services. Total R&amp;D costs for the nine months ended September
30, 2020 and 2019 were $49,250 and $62,350, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Property
and Equipment</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Property
and equipment is recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are
charged to operations as incurred. Depreciation of property and equipment is computed by the straight-line method (after taking
into account their respective estimated residual values) over the assets estimated useful life of five (5) years. Upon sale or
retirement of equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected
in the consolidated statements of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Impairment
of Long-Lived Assets</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Long-lived
assets are reviewed for impairment when there is evidence that events or changes in circumstances indicate that the carrying amount
of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying
amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group.
If the carrying amount of an asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized
for the amount by which the carrying amount of the asset or asset group exceeds the estimated fair value of the asset or asset
group. Long-lived assets to be disposed of by sale are reported at the lower of their carrying amounts or their estimated fair
values less costs to sell and are not depreciated. As of September 30, 2020 and December 31, 2019, there were no asset impairments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Lease
Commitment</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company determines if an arrangement is a lease at inception. This determination generally depends on whether the arrangement
conveys to the Company the right to control the use of an explicitly or implicitly identified fixed asset for a period of time
in exchange for consideration. Control of an underlying asset is conveyed to the Company if the Company obtains the rights to
direct the use of and to obtain substantially all of the economic benefits from using the underlying asset. The Company has lease
agreements which include lease and non-lease components, which the Company has elected to account for as a single lease component
for all classes of underlying assets. Lease expense for variable lease components are recognized when the obligation is probable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operating
lease right of use (&ldquo;ROU&rdquo;) assets and lease liabilities are recognized at commencement date based on the present value
of lease payments over the lease term. Operating lease payments are recognized as lease expense on a straight-line basis over
the lease term. The Company primarily leases buildings (real estate) which are classified as operating leases. ASC 842 requires
a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily
determined, its incremental borrowing rate. As an implicit interest rate is not readily determinable in the Company&rsquo;s leases,
the incremental borrowing rate is used based on the information available at commencement date in determining the present value
of lease payments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
lease term for all of the Company&rsquo;s leases includes the non-cancellable period of the lease plus any additional periods
covered by either a Company option to extend (or not to terminate) the lease that the Company is reasonably certain to exercise,
or an option to extend (or not to terminate) the lease controlled by the lessor. Options for lease renewals have been excluded
from the lease term (and lease liability) for the majority of the Company&rsquo;s leases as the reasonably certain threshold is
not met.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lease
payments included in the measurement of the lease liability are comprised of fixed payments, variable payments that depend on
index or rate, and amounts probable to be payable under the exercise of the Company option to purchase the underlying asset if
reasonably certain.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Variable
lease payments not dependent on a rate or index associated with the Company&rsquo;s leases are recognized when the event, activity,
or circumstance in the lease agreement on which those payments are assessed as probable. Variable lease payments are presented
as operating expenses in the Company&rsquo;s statement of operations in the same line as expense arising from fixed lease payments.
As of September 30, 2020, management determined that there were no variable lease costs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Income
Taxes</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included
in the consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the
differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the
fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the
extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable income in the fiscal 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 consolidated statement of operations in the period that includes the enactment date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue
Service and other tax authorities. In addition, the calculation of the Company&rsquo;s tax liabilities involves dealing with uncertainties
in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions based on a two-step
process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates
that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation
processes, if any. The second step is to measure the tax benefit as the largest amount that is more than&nbsp;50%&nbsp;likely
of being realized upon settlement. While the Company believes it has appropriate support for the positions taken on its tax returns,
the Company regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision
for income taxes. The Company continually assesses the likelihood and amount of potential adjustments and adjusts the income tax
provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known.
As of September 30, 2020 and 2019, the Company does not believe any provisions are required in connection with uncertain tax positions
as there are none.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Per
Share Information</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Basic
net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common
stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the
weighted average number of shares of common stock and potentially outstanding shares of common stock during the period.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of September 30, 2020 and 2019, the Company had potential dilutive securities related to options, warrants, Series A preferred
stock and convertible notes payable. These dilutive securities were not included within the calculation of dilutive net loss per
common share as the effects would have been anti-dilutive.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Convertible
Debt</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Convertible
debt is accounted for under the guidelines established by ASC 470-20 Conversion and Other Options. ASC 470-20 governs the calculation
of an embedded beneficial conversion, which is treated as an additional discount to the instruments where derivative accounting
does not apply. The amount of the value of additional stock and other consideration in addition to the beneficial conversion feature
may reduce the carrying value of the instrument to zero, but no further. The discounts are accreted over the term of the debt
using the straight line method due to the short terms of the notes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company accounts for modifications of its embedded beneficial conversions, in accordance with ASC 470-50 Modifications and Extinguishments.
ASC 470-50 requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature
and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in
a debt extinguishment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Stock
Based Compensation</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company recognizes as compensation expense all share-based payment awards made to employees, directors, and consultants including
grants of stock options and warrants, based on estimated fair values. Fair value is generally determined based on the closing
price of the Company&rsquo;s common stock on the date of grant and is recognized over the service period. The Company has several
consulting agreements that have share based payment awards based on performance. These agreements typically require the Company
to issue common stock to the consultants on a monthly basis. The Company records the fair market value of the common stock issuable
at each month end when the performance is complete based upon the closing market price of the Company&rsquo;s common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>New
Accounting Pronouncements</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
FASB issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date that amend the original
text of ASC. The Company believes those issued to date either (i) provide supplemental guidance, (ii) are technical corrections,
(iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
3 &ndash; GOING CONCERN</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
reflected in the accompanying consolidated financial statements, during the nine months ended September 30, 2020 and 2019, the
Company incurred a net loss of $2,898,406 and $907,970 and used cash of $303,235 and $593,236 in operating activities. In addition,
the Company had a working capital deficit of $7,735,022 and an accumulated deficit of $43,658,819 at September 30, 2020. These
factors raise substantial doubt regarding the Company&rsquo;s ability to continue as a going concern. We have evaluated the conditions
or events that raise substantial doubt about the Company&rsquo;s ability as a going concern within one year of issuance of the
consolidated financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
the Company is continuing operations and generating revenues, the Company&rsquo;s cash position is not significant enough to support
the Company&rsquo;s daily operations. To fund operations and reduce the working capital deficit, we intend to raise additional
funds through public or private debt and/or equity offerings. During 2020, the Company raised $274,614 from eight sales of a repurchase
option and $25,000 from warrants exercised to fund operations. Management believes that the actions presently being taken to further
implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern, however,
such are not guaranteed. While the Company believes in the viability of its strategy to generate revenues and in its ability to
raise additional funds, there can be no assurances to that effect, nor can there be assurance that such funds will be at acceptable
terms. As of the date of these consolidated financial statements, the Company has not finalized a commitment for additional capital.
The ability of the Company to continue as a going concern is dependent upon our ability to further implement its business plan
and generate revenues and cash flows. The consolidated financial statements do not include any adjustments that might be necessary
if the Company is unable to continue as a going concern.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Risks
and uncertainties</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 30, 2020, the World Health Organization declared the coronavirus outbreak a &ldquo;Public Health Emergency of International
Concern&rdquo; and on March 10, 2020, declared it to be a pandemic. Actions taken around the world to help mitigate the spread
of the coronavirus include restrictions on travel, and quarantines in certain areas, and forced closures for certain types of
public places and businesses. The coronavirus and actions taken to mitigate it have had and are expected to continue to have an
adverse impact on the economies and financial markets of many countries, including the geographical area in which the Company
operates. Since we derive our revenues from processing of purchases from our merchant services clients, a downturn in economic
activity, such as associated with the current coronavirus pandemic, could reduce the volume of purchases we process, and thus
our revenues. In addition, such a downturn could cause our merchant customers to cease operations permanently decreasing our payment
processing unless new customers are found. We may also face additional difficulty in raising capital during an economic downturn.
The effects of the pandemic had significant impact on revenue at the beginning of the pandemic and began to return to normal after
several months. The continuing effects of the potential impact cannot be estimate at this time.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
it is reasonably possible that the estimates made in the financial statements have been, or will be materially and adversely impacted
in the near term as a result of these conditions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
4 &ndash; PATENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Patents</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 22, 2017, AppTech executed an Amendment to Asset Purchase Agreement with GlobalTel Media, Inc. In connection with the asset
purchase agreement, 5,000,000 shares of common stock were issued to GlobalTel Media, Inc. The Company valued the common stock
issuance at $1,000,000 based on the closing market price of the Company&rsquo;s common stock on the date in which the performance
was complete. This amendment revived the original asset purchase agreement dated December 4, 2013 to purchase the assets of GlobalTel
Media, Inc. (AppTech and GlobalTel agree that the asset purchase agreement dated September 30, 2015 is null and void), which include,
but is not limited to, all intellectual property, United States Patent Trademark Office (&ldquo;USPTO&rdquo;) issued patents,
enterprise-grade, patent protected software and intellectual property for advanced messaging incorporating secure payments, databases,
documentation, copyrights, trademarks, registrations, and all current development work in process of USPTO application approval;
more specifically but not limited to USPTO 8,073,895 &amp; 8,572,166 &ldquo;System and Method for Delivering Web Content to a
Mobile Device&rdquo;, USPTO 8,315,184 &ldquo;Computer to Mobile Two-Way Chat System and Method&rdquo;, and USPTO 8,369,828 &ldquo;Mobile-to-Mobile
Payment System and Method&rdquo;. GlobalTel&rsquo;s technology focuses on SMS text-based applications, social media and mobile
payment. The USPTO assigned the patents to AppTech on July 25, 2017. AppTech, as part of the various agreements, agreed to pay
$1,600,000 which included an assumption of certain liabilities, including costs incurred to continue development of the patents,
as well as guaranteed payment of 25% of the net proceeds on revenue created by the patents up to $26,600,000. As of September
30, 2020 and December 31, 2019, amounts included in accounts payable related to the assumption of liabilities in connection with
the patents were $340,500 and $415,000, respectively. The Company has expensed the cost of the patents as research and development
costs as the future estimated cash flow expected cannot be reasonably estimated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
5 &ndash; ACCRUED LIABILITIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accrued
liabilities as of September 30, 2020 and December 31, 2019 consist of the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">September 30, 2020</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">December 31, 2019</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; text-align: left; padding-left: 7.5pt">Accrued interest &ndash; related parties</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,010,505</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">943,356</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Accrued interest &ndash; third parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,352,090</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,215,699</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Accrued residuals</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,068</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,064</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 7.5pt">Accrued merchant equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">91,023</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">91,023</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 7.5pt">Other</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">44,026</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">45,338</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; padding-left: 7.5pt">Total accrued liabilities</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2,552,712</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2,334,480</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Accrued
Interest</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes
payable and convertible notes payable incur interest at rates between 10% and 15%, per annum. The accrued interest in most cases
is currently in technical default due to the notes being past their maturity date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Accrued
Residuals</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company pays commissions to independent agents which refer merchant accounts. The amounts payable to these independent agents
is based upon a percentage of the amounts processed on a monthly basis by these merchant accounts.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Accrued
Merchant Equity Liability</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company provided all merchants the opportunity to earn shares of the Company&rsquo;s common stock through their Merchant Equity
Program (the &ldquo;Program&rdquo;). Under the Program, the merchant earned 1% of their total Visa/MasterCard volume processed
during the first year of their contract. For example, if a merchant processes $1.0 million in credit card charges, the merchant
will receive 10,000 shares of the Company&rsquo;s common stock. The merchant must process with the Company for a period of three
years for the shares to vest. All merchants became fully vested when the Company ended the program effective December 31, 2015.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
merchants in which the shares of common stock are not known as they are within the one-year period, the Company estimates on a
quarterly basis as to the estimated amount of shares based upon the expected amount to be processed by the merchant on an annual
basis. At the end of the first year, when the number of shares issuable is known, the Company makes an adjustment to the value
of the shares, if needed.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company accounts for the value of the shares under the program as a sales incentive and thus the amounts in connection with the
Program are recorded as a reduction to revenues. As of September 30, 2020, the Company has an obligation to issue approximately
776,000 shares of the Company&rsquo;s common stock issuable under the Program. During the year ended December 31, 2019, the Company
issued 37,193 shares of common stock relieving $14,877 in liability under the program.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
6 &ndash; NOTES PAYABLE AND CONVERTIBLE NOTES PAYABLE</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company funds operations through cash flows generated from operations and the issuance of loans and notes payable. The following
is a summary of loans and notes payable outstanding as of September 30, 2020 and December 31, 2019. Related parties noted below
are either members of management, board of directors, significant shareholders or individuals in which have significant influence
over the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Loans
Payable &ndash; Related Parties</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the nine months ended September 30, 2020 and 2019, the Company obtained (paid) $(42,000) and $79,000 loans payable from related
parties, net. As of September 30, 2020 and December 31, 2019, the balance of the loans payable was $51,401 and $93,401, respectively.
The loans payable are due on demand, unsecured and non-interest bearing as there are no formal agreements executed.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Subordinated
Notes Payable</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2016, the Company issued $350,000 in subordinated notes payable to third parties. The subordinated notes payable were due in 30
to 180 days and incurred interest at 10% per annum. As of September 30, 2020 and December 31, 2019, accrued interest related to
the subordinated notes was $144,795 and $118,545, respectively. The Company is currently in default of the subordinated note agreements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Convertible
Notes Payable</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2017, the Company received $222,000 in convertible notes payable from related parties. The convertible notes payable are unsecured,
were due in 180 days, incur interest at 10% per annum and are convertible at $0.10 per share. As of September 30, 2020 and December
31, 2019, accrued interest related to the convertible notes was $70,638 and $53,988, respectively. On the date of the agreement,
Management calculated the beneficial conversion feature in connection with the convertible notes payable and recorded a discount
of $222,000. The Company amortized the discount over the term of the convertible notes payable of 180 days. The Company is currently
in default on the convertible notes payable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2015, the Company issued $50,000 in convertible notes payable. The convertible notes payable are unsecured, were due in nine months,
incur interest at 10% per annum and are convertible at $1.00 per share. As of September 30, 2020 and December 31, 2019, the accrued
interest related to the convertible notes was $24,584 and $20,833, respectively. The Company is currently in default on the convertible
note payable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2014, the Company issued $400,000 in convertible notes payable. The convertible notes payable are unsecured, due in periods ranging
up to one year, incurring interest between 10% to 12% per annum and are convertible at prices ranging from $0.33 to $1.00 per
share. In addition, the Company issued 400,000 shares of common stock in connection with the convertible notes payable. The Company
had the obligation to repurchase the 400,000 shares of common stock at $1.00 per share within one year of the note issuance date.
As of September 30, 2020 and December 31, 2019, the Company held the obligation to repurchase the shares for $400,000. As of September
30, 2020 and December 31, 2019, the accrued interest related to the convertible notes was $216,833 and $186,083, respectively.
The Company is currently in default of the note agreements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2008 and 2009, the Company issued $320,000 in convertible notes payable, of which $150,000 was from related parties. The convertible
notes payable are currently due on demand, incur interest at 15% per annum, and convertible at $0.60 per share. As of September
30, 2020 and December 31, 2019, accrued interest related to the convertible notes was $552,013 and $516,013 of which $260,250
and $243,375, respectively, was due to related parties. The Company is currently in default of the notes payable agreements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Notes
Payable</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2020, the Company entered into a note payable with U.S. Small Business Administration for $68,200 in proceeds. The notes payable
incurred a $100 fee upon issuance and incurs interest at 3.75% per annum. All payments of principle and interest are deferred
for twelve months with the first $333 payment due July 1, 2021. As of September 30, 2020 the balance of the note payable was $68,300
and accrued interest was $640.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2016, the Company issued $143,000 in notes payable to third parties. The notes payable were due in ninety days or less. During
2019, the Company paid $36,000 in notes payable. The Company is currently in default of the note agreements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2007 and 2008, the Company entered into notes payable with a related party for $46,000 in proceeds. The notes payable were due
on demand and incurred interest at 12% per annum. These were combined into a single note agreement in 2014. As of September 30,
2020 and December 31, 2019, the balance on the note payable was $88,136 and accrued interest related to the note payable was $57,235
and $49,243, respectively. The Company is currently in default of the note payable agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2007, the Company entered into note payable with a third party for $128,000 in proceeds. Under the terms of the agreement the
holder received a flat interest amount of $37,496. The Company is currently in default of the note payable agreement and the entire
amount of $37,496 has been included within accrued interest. Since the note payable did not incur interest, the Company imputed
interest at $9,600 and $9,600, respectively, which represented an interest rate of 10% per annum during the nine months ended
September 30, 2020 and 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2008, the Company entered into a note payable with a third party for $10,000 in total proceeds. The note payable is currently
in default and has a flat interest amount due of $21,000. As of September 30, 2020 and December 31, 2019, the Company was in default
of the note agreement and the entire amount of $21,000 has been included within accrued interest. Since the notes payable do not
incur interest, the Company imputed interest at $750 and $750, respectively, which represented an interest rate of 10% per annum
during the nine months ended September 30, 2020 and 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2008, the Company entered into notes payable with a third party for $26,000 in total proceeds. The notes payable have a flat interest
amount due of $80,000. During 2015, the Company received another $50,000 from the third party. During 2017, the Company entered
into an agreement whereby they would repay the principal and accrued interest in the amount of $145,000 by April 4, 2018 and issue
the holders 800,000 shares of common stock. The Company recorded the fair market value of the common stock issued at $336,000
based on the date of issuance as interest expense. Other than the issuance of shares of common stock, the Company did not perform
under the agreement. The Company is currently in default of the note agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2007, the Company entered into note payable with a third party for $221,800 in proceeds. The note payable is currently in default
and incurs interest at 10% per annum. On September 30, 2013, the holder received an arbitration settlement for the principal and
accrued interest. As of September 30, 2020 and December 31, 2019, the Company was in default of the arbitration settlement. As
of September 30, 2020 and December 31, 2019, accrued interest related to the note payable was $460,072 and $429,861, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2007, the Company entered into note payable with a significant shareholder for $58,600 in proceeds. The note payable is currently
due on demand and incurs interest at 10% per annum. As of September 30, 2020 and December 31, 2019, accrued interest related to
the note payable was $74,908 and $70,513, respectively. The Company is currently in default of the note agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Two
significant shareholders funded the Company&rsquo;s operations through notes payable in primarily 2009 and 2010 and continue to
support operations on a limited basis. The notes payable incur interest at 10% per annum and were due on December 31, 2016. The
Company is currently in default of the note agreements. As of September 30, 2020 and December 31, 2019, the aggregate balance
of the notes payable was $620,355 and $591,114 accrued interest was $622,382 and $575,480, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
7 &ndash; RIGHT OF USE ASSET</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Lease
Agreement</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
January 2020, the Company entered into a lease agreement commencing February 8, 2020 for its current facility which expires in
2025. The term of the lease is for five years. The Company also entered into a six month option to purchase its current facility
under terms and conditions of the lease. At inception of the lease, the Company recorded a right of use asset and liability. The
Company used an effective borrowing rate of 12% within the calculation. The following are the expected lease payments as of September
30, 2020, including the total amount of imputed interest related:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Years
ended December 31, :</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; text-align: left">2020</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 45%; text-align: right">20,089</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2021</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">82,561</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">2022</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">85,039</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2023</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">87,590</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">2024</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">90,217</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-align: left">2025</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">7,536</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">373,032</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less: Imputed interest</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(84,823</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">288,209</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
8 - COMMITMENTS AND CONTIGENCIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Litigation</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Shareholder
Lawsuit</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March 2016, a significant shareholder (&ldquo;Plaintiff&rdquo;) of the Company filed a lawsuit against the Company in the state
of California alleging breach of contract, fraud and negligent misrepresentation based on supposed oral promises in 2013 to give
Plaintiff&rsquo;s company shares in exchange for stocks in another company and a 2014 consulting agreement. The Company strongly
disputed all claims made in the lawsuit. On April 20, 2017, the Company filed an answer that denied each and every purported allegation
and cause of action and further denied that they caused any damage or loss. The Company reached an agreement resulting in a voluntary
dismissal of the civil case on July 5, 2017. The Plaintiff was not able to fulfill the proper documentation within the allotted
180 days and the 3,450,000 shares of AppTech Corp stock were properly cancelled in 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Former
Shareholders Lawsuits</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
April 2014, a shareholder of AppTech filed a lawsuit against the Company in the State of Washington claiming breach of contract
related to the sale / transfer of unregistered shares at the time of AppTech acquisition. On August 13, 2014, the Company notified
the transfer agent and placed a &rsquo;Stop Order&rsquo; on the shares. The shareholder claims that the 2.5 million shares received
are unrestricted and should be reflected as such. On August 19, 2014, the Company filed a motion to dismiss the lawsuit. The lawsuit
was dismissed on October 31, 2014.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In November 2017, two shareholders of
AppTech, one who previously filed the 2014 lawsuit in the State of Washington, filed another lawsuit against the Company in the
State of California, claiming the same accusations as the previously filed lawsuit which was dismissed. The lawsuit has been transferred
to the United States District Court for the Southern District of California. The Company filed the defendants answer, affirmative
defenses and counter claims. Management believes that the Plaintiff misrepresented and misled AppTech during the merger. The court
has encouraged the parties to settle. Even though the Company believes the lawsuit is without merit and will vigorously defend,
the Company has made several offers to settle. On December 19, 2019, the Company entered into a settlement and release agreement.
The Company has recorded the liability as of December 31, 2019 for the total obligation of $240,000 to be paid out over three
years beginning February 15, 2020. The 2019 impact is recorded in general and administrative expenses. On January 24, 2021,
the parties entered a stipulation modifying the repayment schedule of the settlement. A payment was due February 15, 2021 which
has not been paid to date.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Former
Landlord Lawsuit</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
September 2018, the landlord for our former office space lease filed a limited civil lawsuit against the Company in the State
of California. The Company reached an agreement that resulted in a stipulation for judgment on October 28, 2018. The stipulated
judgment was for $42,432 including attorney fees and court costs plus interest for which the Company recorded as a liability as
of December 31, 2018. The stipulated judgment was paid in full on August 16, 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Patent
Acquisition Lawsuit</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In September 2018, a complaint was filed in
San Diego superior court for a breach of contract arising from a written agreement for the purchase of a judgment to which AppTech
was not a party. The purchase of the judgment was part of the transaction to acquire the patents. AppTech substantially performed
under the agreement but the second agreement to extend the final payment was executed under duress. On October 26, 2018, the Company
filed an answer that denied each and every purported allegation and cause of action and further denied that they caused any damage
or loss. On December 3, 2019, the Company entered into a conditional settlement providing the terms of the conditional settlement
have been completed by October 1, 2020. The conditional settlement amount of $150,000 is paid in monthly installments of $15,000.
The settlement installments paid for the nine months ended September 30, 2020 was $74,500. On December 30, 2020, full payment
was made in accordance with a modified settlement payment schedule.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Significant
Contract</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In August 2020, the Company entered into
a strategic partnership with Silver Alert Services, LLC. doing business as Lifelight Systems (&ldquo;Lifelight&rdquo;), expanding
into the telehealth sphere. The partnership will expand AppTech&rsquo;s reach into new markets and provide advanced technological
solutions for the telehealth and personal emergency response systems markets. The strategic partnership provides a promissory note
for up to one million dollars at a rate of three percent upon successful completion of Lifelight&rsquo;s Personal Emergency Response
System (PERS) pilot program. Also Lifelight is granted the right to purchase four million five hundred thousand shares of AppTech
Corp. exercisable at $0.01 for one million shares and $0.25 for three million five hundred thousand shares upon the successful
completion of the PERS pilot program. In accordance with the agreement, the contract, and all such liabilities and rights, are
contingent upon a Lifelight&rsquo;s successful completion of its PERS pilot program and AppTech securing financing.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
January 2019, the Company entered into an agreement with a broker dealer to provide capital raising activities. Under the terms
of the agreement the broker dealer is to make a minimum of $90,000 in advisory fees. In addition, there are various other provisions
within the agreement which include a 10% placement fee, warrants to purchase common stock, a 4% transaction fee, etc.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Employee
versus Contractor Classification</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company compensates various individuals as consultants. Annually, these consultants are issued Form 1099s for amounts paid to
them. In addition, these consultants do not have arrangements in which specify compensation payable to them. The Company risks
potential tax and legal actions if these consultants are deemed to be employees by governmental agencies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
9 &ndash; STOCKHOLDERS&rsquo; DEFICIT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Series
A Preferred Stock</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company is authorized to issue 100,000 shares of $0.001 par value Series A preferred stock (&ldquo;Series A&rdquo;). There were
fourteen (14) shares of Series A preferred stock outstanding as of September 30, 2020 and December 31, 2019. The holders of Series
A preferred stock are entitled to one vote per share on an &ldquo;as converted&rdquo; basis on all matters submitted to a vote
of stockholders and are not entitled to cumulate their votes in the election of directors. The holders of Series A preferred stock
are entitled to any dividends that may be declared by the Board of Directors out of funds legally available, therefore on a pro
rata basis according to their holdings of shares of Series A preferred stock, on an as converted basis. In the event of liquidation
or dissolution of the Company, holders of Series A preferred stock are entitled to share ratably in all assets remaining after
payment of liabilities and have no liquidation preferences. Holders of Series A preferred stock have a right to convert each share
of Series A into 780 shares common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Common
Stock</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company is authorized to issue 1,000,000,000 shares of $0.001 par value common stock. There were 87,821,825 and 84,153,825, respectively,
shares of common stock outstanding as of September 30, 2020 and December 31, 2019. The holders of common stock are entitled to
one vote per share on all matters submitted to a vote of stockholders and are not entitled to cumulate their votes in the election
of directors. The holders of common stock are entitled to any dividends that may be declared by the board of directors out of
funds legally available, therefore subject to the prior rights of holders of any outstanding shares of preferred stock and any
contractual restrictions against the payment of dividends on common stock. In the event of liquidation or dissolution of the Company,
holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation
preferences of any outstanding shares of preferred stock. Holders of common stock have no preemptive or other subscription rights
and no right to convert their common stock into any other securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the nine months ended September 30, 2020 and 2019, the Company issued 3,568,000 and 439,500, respectively, shares of common stock
to several consultants in connection with business development, accounts payable conversion and professional services. The Company
valued the common stock issuances at $2,357,125 and $89,134, respectively, based upon the closing market price of the Company&rsquo;s
common stock on the date in which the performance was complete or issued based upon the vesting schedule and the closing market
price of the Company&rsquo;s common stock on the date of the agreement. The amounts were expensed to general and administrative
expenses on the accompanying consolidated statements of operations. The accounts payable conversion was $152,500.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Stock
Options</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
August 25, 2020, the Company issued an option to purchase 100,000 shares of common stock at $0.25 per share with an expiration
date of February 25, 2021. The options were valued at $140,945 and include within stock issued for business development consulting
services. The Company valued the options at $140,945 using the Black Scholes valuation model with the following variables; expected
volatility of 100%, risk free rate of 0.11%, fair market value of the Company&rsquo;s common stock of $1.48 on the date of grant,
and an expected life of 0.50 years. The option was exercised on August 26, 2020.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Common
Stock Repurchase Option</U></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 23, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 300,000 shares of
common stock from a third party at $0.05 per share. The Company assigned its rights to the repurchase option agreement to a third
party in exchange for compensation. The common stock repurchase options were exercised on January 26, 2020 for which the Company
received $98,750 in proceeds which was recorded as additional paid-in capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 26, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 266,115 shares of
common stock from a third party at $0.05 per share. The Company assigned its rights to the repurchase option agreement to a third
party in exchange for compensation. The common stock repurchase option was exercised on February 27, 2020 for which the Company
received $25,281 in proceeds which was recorded as additional paid-in capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 18, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 250,000 shares of common
stock from a third party at $0.05 per share. The Company assigned its rights to the repurchase option agreement to a third party
in exchange for compensation. The common stock repurchase option was exercised on March 19, 2020 for which the Company received
$62,500 in proceeds which was recorded as additional paid-in capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 24, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 55,000 shares of common
stock from a third party at $0.05 per share. The Company assigned its rights to the repurchase option agreement to a third party
in exchange for compensation. The common stock repurchase option was exercised on April 27, 2020 for which the Company received
$19,250 in proceeds which was recorded as additional paid-in capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
August 26, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 250,000 shares of common
stock from a third party at $0.07 per share. The Company assigned its rights to the repurchase option agreement to a third party
in exchange for compensation. The common stock repurchase option was exercised on August 26, 2020 for which the Company received
$45,000 in proceeds which was recorded as additional paid-in capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
10 &ndash; SUBSEQUENT EVENTS</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management
has evaluated subsequent events pursuant to the requirements of ASC Topic 855 and has determined that no material subsequent events
exist other than those disclosed below.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 1, 2020, the Company entered
into a strategic partnership with NEC Payments B.S.C through the deployment of NECP&rsquo;s technologies, AppTech will extend
its product offering to include flexible, scalable and secure payment acceptance and issuer payment processing that supports the
digitization of business and consumer financial services and the migration of cash and other legally payment types to distanced
and contactless card and real time payment transactions. NECP will assist AppTech to complete the development of its text payment
solution and provide best in class software that complements AppTech&rsquo;s intellectual property. AppTech will also receive
licenses to utilize NECP&rsquo;s digital banking platform, including exclusivity in the United States for its payment acceptance
software.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All terms of this agreement are contingent
upon AppTech Corp. receiving funding in excess of three million dollars within forty-five days of execution. NECP will be awarded
a fifteen percent equity stake in AppTech Corp. on a fully diluted basis.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 2, 2020, the Company entered into an independent contractor services agreement with Innovations Realized, LLC to develop
a strategic operating plan focused on the design, execution and go to market aspects of the NECP platform to enter the United
States market.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 21, 2020, the Company entered into an engagement agreement with Emerging Markets Consulting, LLC. to be the investor relations
firm for the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 14, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 2,000,000 shares of
common stock from a third party at $0.20 per share. The Company assigned a portion of the repurchase option agreement to a third
party in exchange for compensation. The common stock repurchase option for 13,333 shares was exercised on October 14, 2020 for
which the Company received $7,333 in proceeds which was recorded as additional paid-in capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 14, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 2,000,000 shares of
common stock from a third party at $0.20 per share. The Company assigned a portion of the repurchase option agreement to a third
party in exchange for compensation. The common stock repurchase option for 10,000 shares was exercised on October 15, 2020 for
which the Company received $5,500 in proceeds which was recorded as additional paid-in capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 14, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 2,000,000 shares of
common stock from a third party at $0.20 per share. The Company assigned a portion of the repurchase option agreement to a third
party in exchange for compensation. The common stock repurchase option for 20,000 shares was exercised on October 29, 2020 for
which the Company received $11,000 in proceeds which was recorded as additional paid-in capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 29, 2020, the Company had an option for 100,000 shares of common stock exercised by a consultant for $0.30 per share.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 25, 2020, the Company entered into a securities purchase agreement with EMA Financial, LLC in which the Company sold
a convertible note in the principal amount of $300,000 and a common stock purchase warrant permitting the holder to purchase 200,000
shares of common stock for an exercise price of $1.50 per share, subject to the terms and conditions of the agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 21, 2020, the Company sold the domain &ldquo;bubblepay.com&rdquo; for $72,500 to a third party.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 30, 2020, the Company amended
its Strategic Partnership Agreement and Purchase Option Agreement with Silver Alert dated August 21, 2020. The amendment altered
and/or added certain definitions and the loan disbursements in the Strategic Partnership Agreement. Further, the Repurchase Option
Agreement was amended to incorporate a vesting schedule related to the gross revenue generated from the partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 03, 2021, the Company entered into an amendment to a common stock repurchase option agreement to purchase or assign 2,000,000
shares of common stock from a third party at $0.20 per share. The Company assigned a portion of the repurchase option agreement
to a third party in exchange for compensation. The common stock repurchase option for 50,000 shares was exercised on February
12, 2021 for which the Company received $33,750 in proceeds which was recorded as additional paid-in capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 11, 2021, the Company entered into an Amended and Restated Subscription License and Operating Agreement with NEC Payments
B.S.C. The restated document alters the fees and timing of payments associated with the agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">See
note 8 for additional subsequent events.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Common
Stock</B></FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>APPTECH
CORP.</B></FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><IMG SRC="image_001.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>PROSPECTUS</B></FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>,
2021</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; background-color: white; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Through
and including&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2021 (the
25th day after the date of this prospectus), all dealers effecting transactions in these securities, whether or not participating
in this offering, may be required to deliver a prospectus. This is in addition to a dealer&rsquo;s obligation to deliver a prospectus
when acting as an underwriter and with respect to an unsold allotment or subscription.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B>PART
II</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B>INFORMATION
NOT REQUIRED IN PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
13. Other Expenses of Issuance and Distribution</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth the costs and expenses, other than the underwriting discounts and commissions, payable by the registrant
in connection with the sale of common stock being registered. All amounts are estimates except for the SEC registration fee, the
Financial Industry Regulatory Authority, or FINRA, filing fee and [ ] additional listing fee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: WHITE">
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">Item</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: center"><B>Amount
                                         to<BR> be paid</B></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 45%; text-align: left">SEC registration fee</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&bull;]</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">FINRA filing fee</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&bull;]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Printing fees and expenses</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&bull;]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Legal fees and expenses</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&bull;]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounting fees and expenses</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&bull;]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Underwriter&rsquo;s expenses</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&bull;]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Transfer agent&rsquo;s fees and expenses</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&bull;]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Miscellaneous fees and expenses</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&bull;]</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt; padding-left: 10pt">Total</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&bull;]</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
14. Indemnification of Directors and Officers</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section
17-16-851 of the Wyoming Business Corporation Act provides that a corporation may indemnify a director against liability incurred
in a proceeding if:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)
(A) the director conducted himself in good faith; and</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(B)
he reasonably believed that his conduct was in or at least not opposed to the corporation&rsquo;s best interests; and</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(C)
in the case of any criminal proceeding, the director had no reasonable cause to believe his conduct was unlawful; or</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)
the director engaged in conduct for which broader indemnification has been made permissible or obligatory under a provision of
the articles of incorporation, as authorized by Section 17-16-202(b)(v) of the Wyoming Business Corporation Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
director&rsquo;s conduct with respect to an employee benefit plan for a purpose the director reasonably believed to be in the
interests of the participants in and beneficiaries of the plan is conduct that satisfies the requirement of subparagraph (a)(i)(B)&nbsp;of
Section 17-16-851.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
termination of a proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent is
not, of itself, determinative that the director did not meet the standard of conduct described in Section 17-16-851.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Article
XIV of our Bylaws states the we shall indemnify the directors, officers, agents and employees of the Company in the manner and
to the full extent provided in the General Corporation Law of the State of Wyoming</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
15. Recent Sales of Unregistered Securities</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">During</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;2020&nbsp;<FONT STYLE="letter-spacing: -0.05pt">year-to-date,</FONT>&nbsp;<FONT STYLE="letter-spacing: -0.1pt">we</FONT>&nbsp;<FONT STYLE="letter-spacing: -0.05pt">assigned</FONT>&nbsp;our&nbsp;<FONT STYLE="letter-spacing: -0.05pt">rights</FONT>&nbsp;to&nbsp;<FONT STYLE="letter-spacing: -0.05pt">stock
repurchase</FONT>&nbsp;option&nbsp;<FONT STYLE="letter-spacing: -0.05pt">agreements</FONT>&nbsp;to third parties&nbsp;<FONT STYLE="letter-spacing: -0.05pt">resulting</FONT>&nbsp;in&nbsp;<FONT STYLE="letter-spacing: -0.05pt">net</FONT>&nbsp;proceeds
of $274,614 and $25,000 from warrants exercised.&nbsp;<FONT STYLE="letter-spacing: -0.05pt">During&nbsp;</FONT>the&nbsp;<FONT STYLE="letter-spacing: -0.05pt">nine
months</FONT>&nbsp;ended September 30, 2020, 3,568,000&nbsp;<FONT STYLE="letter-spacing: -0.05pt">shares&nbsp;</FONT>of common
stock&nbsp;<FONT STYLE="letter-spacing: -0.05pt">were issued</FONT>&nbsp;to&nbsp;<FONT STYLE="letter-spacing: -0.05pt">several&nbsp;</FONT>consultants
in connection&nbsp;<FONT STYLE="letter-spacing: -0.05pt">with</FONT>&nbsp;business development&nbsp;<FONT STYLE="letter-spacing: -0.05pt">and
professional</FONT>&nbsp;services rendered&nbsp;<FONT STYLE="letter-spacing: -0.05pt">valued</FONT>&nbsp;at $2,357,125.&nbsp;<FONT STYLE="letter-spacing: -0.05pt">During</FONT>&nbsp;the
nine&nbsp;<FONT STYLE="letter-spacing: -0.05pt">months&nbsp;</FONT>ended September 30, 2020,&nbsp;<FONT STYLE="letter-spacing: -0.05pt">no
shares</FONT>&nbsp;<FONT STYLE="letter-spacing: 0.05pt">of</FONT>&nbsp;common stock were&nbsp;<FONT STYLE="letter-spacing: -0.05pt">issued</FONT>&nbsp;to&nbsp;<FONT STYLE="letter-spacing: -0.05pt">members</FONT>&nbsp;<FONT STYLE="letter-spacing: 0.05pt">of</FONT>&nbsp;<FONT STYLE="letter-spacing: -0.05pt">the&nbsp;</FONT>Board
of&nbsp;<FONT STYLE="letter-spacing: -0.05pt">Directors.</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: -0.05pt">All
Issuances were exempt from registration requirements of Section 5 of the Securities Act of 1933 as they did not involve a public
offering under Section 4(a)(2) and were issued as restricted securities&nbsp;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; letter-spacing: 0.05pt">as</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<FONT STYLE="letter-spacing: -0.05pt">defined</FONT>&nbsp;<FONT STYLE="letter-spacing: 0.05pt">in&nbsp;</FONT><FONT STYLE="letter-spacing: -0.05pt">Rule
144 of the Act.</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
16. Exhibits and financial statement schedules</B></FONT></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</FONT></TD>
    <TD STYLE="width: 96%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibits</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify; padding-top: 0pt; padding-right: 0pt; padding-left: 0pt; width: 9%; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit</B></FONT></TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt 0pt 1pt; text-align: justify; width: 1%; text-indent: 0pt; vertical-align: top"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; vertical-align: top; text-align: justify; padding-top: 0pt; padding-right: 0pt; padding-left: 0pt; text-indent: 0pt; width: 90%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Description</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.1</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Underwriting Agreement **</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.1</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_1.htm">AppTech Corp. Articles of Conversion filed October 25, 2006 (incorporated by reference to Exhibit 3.1 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.2</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_2.htm">AppTech Corp. Articles of Incorporation filed October 25, 2006 (incorporated by reference to Exhibit 3.2 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.3</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_3.htm">AppTech Corp. Certificate of Designation filed May 09, 2007 (incorporated by reference to Exhibit 3.3 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.4</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_4.htm">AppTech Corp. Certificate of Correction filed June 04, 2007 (incorporated by reference to Exhibit 3.4 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.5</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_5.htm">AppTech Corp. Certificate of Designation filed June 06, 2007 (incorporated by reference to Exhibit 3.5 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.6</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_6.htm">AppTech Corp. Amendment to Certificate of Designation After Issuance of Class or Series filed November 17, 2008 (incorporated by reference to Exhibit 3.6 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.7</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_7.htm">AppTech Corp. Certificate of Amendment filed October 26, 2009 (incorporated by reference to Exhibit 3.7 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.8</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_8.htm">AppTech Corp. Certificate of Amendment filed October 27, 2009 (incorporated by reference to Exhibit 3.8 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.9</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_9.htm">AppTech Corp. Certificate of Designation filed April 21, 2010 (incorporated by reference to Exhibit 3.9 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.10</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_10.htm">AppTech Corp. Amendment to Certificate of Designation After Issuance of Class or Series filed April 27, 2010 (incorporated by reference to Exhibit 3.10 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.11</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_11.htm">AppTech Corp. Certificate of Change filed July 22, 2010 (incorporated by reference to Exhibit 3.11 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.12</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_12.htm">AppTech Corp. Amendment to Certificate of Designation After Issuance of Class or Series filed October 26, 2010 (incorporated by reference to Exhibit 3.12 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.13</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_13.htm">AppTech Corp. Amendment to Certificate of Designation After Issuance of Class or Series filed October 26, 2010 (incorporated by reference to Exhibit 3.13 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
</TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.14</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt; width: 90%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_14.htm">AppTech Corp. Amendment to Certificate of Designation After Issuance of Class or Series filed October 28, 2010 (incorporated by reference to Exhibit 3.14 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.15</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_15.htm">AppTech Corp. Amendment to Certificate of Designation After Issuance of Class or Series filed April 08, 2011 (incorporated by reference to Exhibit 3.15 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.16</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_16.htm">AppTech Corp. Certificate of Amendment filed June 06, 2011 (incorporated by reference to Exhibit 3.16 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.17</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_17.htm">AppTech Corp. Articles of Domestication filed July 18, 2011 (incorporated by reference to Exhibit 3.17 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.18</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_18.htm">AppTech Corp. Bylaws dated May 07, 2013 (incorporated by reference to Exhibit 3.18 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.19</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_19.htm">AppTech Corp. Certificate of Domestication filed July 09, 2013 (incorporated by reference to Exhibit 3.19 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.20</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_20.htm">AppTech Corp. Articles of Amendment filed October 31, 2013 (incorporated by reference to Exhibit 3.20 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.21</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex3_21.htm">AppTech Corp. Certificate of Incorporation filed July 29, 2015(incorporated by reference to Exhibit 3.21 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.1</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex4_1.htm">Specimen Stock Certificate of AppTech Corp.'s Common Stock (incorporated by reference to Exhibit 4.1 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.1</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Opinion of Nelson Mullins Riley &amp; Scarborough LLP**</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.1</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex10_1.htm">Asset Purchase Agreement dated December 04, 2013 (incorporated by reference to Exhibit 10.1 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.2</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex10_2.htm">Amendment to Asset Purchase Agreement dated June 22, 2017&nbsp;&nbsp;(incorporated by reference to Exhibit 10.2 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.3</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex10_3.htm">Lease Agreement dated November 15, 2018 (incorporated by reference to Exhibit 10.3 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.4</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000014/ex10_4.htm">Engagement Letter dated September 23, 2019 (incorporated by reference to Exhibit 10.4 to Form 10-12G/A filed February 14, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.5</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000035/ex10_5.htm">Lease &amp; Purchase Option Agreement dated January 22, 2020 (incorporated by reference to Exhibit 10.5 to Form 10-K filed March 30, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.6</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000214/ex10_1.htm">Subscription License and Service Agreement dated as of October 02, 2020, by and among AppTech Corp. and NEC Payments B.S.C. (c) (incorporated by reference to Exhibit 10.1 to Form 8-K filed October 7, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.7</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000214/ex10_2.htm">Digital Banking Platform Operating Agreement dated as of October 02, 2020, by and among AppTech Corp. and NEC Payments B.S.C. (c) (incorporated by reference to Exhibit 10.2 to Form 8-K filed October 7, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.8</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000214/ex10_3.htm">Subscription License Order Form dated as of October 02, 2020, by and among AppTech Corp. and NEC Payments B.S.C. (c) (incorporated by reference to Exhibit 10.3 to Form 8-K filed October 7, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.9</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000214/ex10_4.htm">Registration Rights Agreement dated as of October 02, 2020, by and among AppTech Corp. and NEC Payments B.S.C. (c) (incorporated by reference to Exhibit 10.4 to Form 8-K filed October 7, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.10</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000171/ex10_1.htm">Strategic Partnership Agreement dated as of August 21, 2020, by and among AppTech Corp. and Silver Alert Services LLC, doing business as LifeLight Systems (incorporated by reference to Exhibit 10.1 to Form 8-K filed August 26, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.11</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ex10_11.htm">Amendment No. 1 dated to the Strategic Partnership Agreement dated as of August 21, 2020, by and among AppTech Corp. and Silver Alert Services LLC, doing business as LifeLight Systems</A>*</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000035/ex4_2.htm">AppTech Code of Business Conduct (incorporated by reference to Exhibit 4.2 to Form 10-K filed March 30, 2020)</A></FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.1</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt; width: 90%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ex23_1.htm">Consent of dbbmckennon</A>*</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.2</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent
    of Nelson Mullins Riley &amp; Scarborough LLP (included in Exhibit 5.1)**</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24.1</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Power
    of Attorney (included on signature page)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.1</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000246/ex4_3.htm">Audit Committee Charter (incorporated by reference to Exhibit 4.3 to Form 10-Q filed November 16, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.2</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1070050/000157570520000246/ex4_4.htm">Compensation Committee Charter (incorporated by reference to Exhibit 4.4 to Form 10-Q filed November 16, 2020)</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.3</FONT></TD>
    <TD STYLE="padding: 0pt; text-align: justify; text-indent: 0pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding: 0pt; vertical-align: top; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ex99_3.htm">Corporate Governance and Nominating Committee Charter</A>*</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Filed herewith</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">**</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To be filed by amendment</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
17. Undertakings</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The undersigned
    registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing
    of the registrant&rsquo;s annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934
    (and, where applicable, each filing of an employee benefit plan&rsquo;s annual report pursuant to section 15(d) of the Securities
    Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration
    statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to
    be the initial bona fide offering thereof.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Insofar as indemnification
    for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of
    the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of
    the SEC such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event
    that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or
    paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding)
    is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant
    will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate
    jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be
    governed by the final adjudication of such issue.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(c)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The undersigned
    Registrant hereby undertakes that:</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For purposes of
    determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part
    of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the Registrant pursuant
    to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of
    the time it was declared effective.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For the purpose
    of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus
    shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities
    at that time shall be deemed to be the initial bona fide offering thereof.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Signatures</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the requirements of the Securities Act of 1933, as amended, the Registrant has duly caused this Registration Statement on Form
S-1 to be signed on its behalf by the undersigned, thereunto duly authorized, in Carlsbad, California, on February 16, 2021.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>AppTech Corp.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 52%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 46%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
Luke D&rsquo;Angelo</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:
        Luke D&rsquo;Angelo</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:
        Chief Executive Officer and Chairman of the Board (Principal Executive Officer)</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>POWER
OF ATTORNEY</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">KNOW ALL MEN BY THESE PRESENTS, that each
person whose signature appears below constitutes and appoints Luke D&rsquo;Angelo [his/her] true and lawful attorney-in-fact and
agent with full power of substitution and re-substitution, for him/her and in his name, place and stead, in any and all capacities
to sign any or all amendments (including, without limitation, post-effective amendments) to this Registration Statement, any related
Registration Statement filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended, and any or all pre- or post-effective
amendments thereto, and to file the same, with all exhibits thereto, and all other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorney-in-fact and agent, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in and about the premises, as fully for all intents and purposes as
he or she might or could do in person, hereby ratifying and confirming that said attorney-in-fact and agent, or any substitute
or substitutes for him, may lawfully do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Act
of 1933, as amended, the following persons in the capacities and on the dates indicated have signed this Registration Statement
below.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 30%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Signature</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 53%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 15%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Date</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
    Executive Officer and Chairman of the Board (Principal Executive Officer)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt/107% Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">February
                                         16, 2021</FONT></P></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Luke
    D&rsquo;Angelo</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Gary Wachs</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
    Financial Officer and Director (Principal Financial Officer)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><P STYLE="font: 10pt/107% Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">February
                                         16, 2021</FONT></P></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gary
    Wachs</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Michael Gross</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt/107% Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">February
                                         16, 2021</FONT></P></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael
    Gross</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Christopher Williams</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt/107% Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">February
                                         16, 2021</FONT></P></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Christopher
    Williams</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Mengyin H. Liang</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt/107% Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">February
                                         16, 2021</FONT></P></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mengyin
    H. Liang &ldquo;Roz Huang&rdquo;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Michael O&rsquo;Neal</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt/107% Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">February
                                         16, 2021</FONT></P></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael
    O&rsquo;Neal</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    William Huff</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt/107% Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">February
                                         16, 2021</FONT></P></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">William
    Huff</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
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{"company-data": {"conformed-name": "AppTech Corp.", "cik": "0001070050", "assigned-sic": "7372", "irs-number": "650847995", "state-of-incorporation": "CA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-253160", "film-number": "21640666"}, "business-address": {"street1": "5876 OWENS AVENUE", "street2": "SUITE 100", "city": "CARLSBAD", "state": "CA", "zip": "92008", "phone": "(760) 707-5955"}, "mail-address": {"street1": "5876 OWENS AVENUE", "street2": "SUITE 100", "city": "CARLSBAD", "state": "CA", "zip": "92008"}, "former-company": [{"former-conformed-name": "Natural Nutrition Inc.", "date-changed": "20061101"}, {"former-conformed-name": "CSI Business Finance, Inc.", "date-changed": "20050929"}, {"former-conformed-name": "HEALTH EXPRESS USA INC", "date-changed": "19990719"}]}
As
filed with the Securities and Exchange Commission on February 16, 2021
Registration
No. 333-
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
S-1
REGISTRATION
STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
AppTech
Corp
(Exact
Name of Registrant as Specified in Its Charter)
Wyoming
7389
66-0847995
(State or other jurisdiction
    of
incorporation or organization)
(Primary Standard
    Industrial
Classification Code Number)
(I.R.S. Employer
Identification No.)
5876
Owens Avenue
Suite
100
Carlsbad,
California 92008
(760)
707-5959
(Address,
including zip code, and telephone number, including area code, of registrant's principal executive offices)
Luke
D'Angelo
Chief
Executive Officer
5876
Owens Avenue
Suite
100
Carlsbad,
California 92008
(760)
707-5959
(Name,
address, including zip code, and telephone number, including area code, of agent for service)
Copies
to:
Andrew M. Tucker
Nelson Mullins Riley & Scarborough LLP
101 Constitution Ave NW, Suite 900
Washington, DC 20001
Telephone: +1-202-689-2800
Approximate
date of commencement of proposed sale to public:
As soon as practicable after this Registration Statement is declared effective.
If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under
the Securities Act of 1933, check the following box. ☐
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the
following box and list the Securities Act registration statement number of the earlier effective registration statement for the
same offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list
the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list
the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
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 7(a)(2)(B) of the Securities Act.
☐
CALCULATION
OF REGISTRATION FEE
Title of Each Class of
Securities to Be Registered
Proposed Maximum
Aggregate Offering
Price (1)
Amount of
Registration
Fee (2)
Common Stock, par value $0.001 per share
$
15,000,000
$
1,636.50
(1)
Estimated solely for the purpose of calculating the amount of the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended. Includes the aggregate offering price of the additional shares that the underwriters have the option to purchase to cover over-allotments, if any.
(2)
Registration fee will be paid when registration statement is first publicly filed under the Securities Act of 1933, as amended
The
Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until
the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become
effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until this Registration Statement shall
become effective on such date as the Securities and Exchange Commission, acting pursuant to such Section 8(a), may determine.
The
information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell
these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
PRELIMINARY
    PROSPECTUS
Subject
                                         to completion, dated February     , 2021
Shares
APPTECH
CORP.
Common
Stock
We are offering        shares
of our common stock. Our common stock is currently traded on the OTC Markets under the Symbol "APCX". On February
12, 2021, the last reported sale of our common stock was $2.80 (or $ as adjusted for a reverse stock split of 1-for- ). We intend
to apply to list our common stock on The Nasdaq Capital Market under the symbol "APCX". [We will not proceed
with this offering in the event the common stock is not approved for listing on Nasdaq.]
Investing
in our common stock involves a high degree of risk. Before buying any shares, you should carefully read the discussion of the
material risks of investing on our common stock under the heading "Risk Factors" be that are described in the "Risk
Factors" beginning on page 11 of this prospectus.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
passed on the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.
Per
    Share
Total
Public offering price
$
$
Underwriting discount (1)
$
$
Proceeds, before expenses, to us
$
$
(1)
See
    "Underwriters: beginning on page
72
of this prospectus for additional
    information regarding the compensation payable to the underwriters.
We
have granted a [45-day] option to the underwriters to purchase up to           additional
shares of common stock solely to cover over-allotments, if any. If the underwriters exercise the option in full, the total underwriting
discounts and commissions payable by us with be $ and the total proceeds to us, before expenses, will be $         .
Delivery
of the shares of common stock is expected to be made on or about 2021.
The
date of this prospectus is                 ,
2021
TABLE
OF CONTENTS
Page
PROSPECTUS SUMMARY
1
RISK FACTORS
11
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
26
DIVIDEND POLICY
30
CAPITALIZATION
31
DILUTION
32
SELECTED FINANCIAL INFORMATION
34
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
35
BUSINESS
41
MANAGEMENT
50
EXECUTIVE COMPENSATION
56
DIRECTOR COMPENSATION
58
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
60
PRINCIPAL STOCKHOLDERS
62
DESCRIPTION OF CAPITAL STOCK
63
SHARES ELIGIBLE FOR FUTURE SALE
65
UNDERWRITERS
72
LEGAL MATTERS
74
EXPERTS
74
WHERE YOU CAN FIND MORE INFORMATION
74
i
Neither
we nor the underwriters have authorized anyone to provide you with information different from, or in addition to, that
contained in this prospectus, any amendment or supplement to this prospectus or any free writing prospectus prepared by or on
behalf of us or to which we have referred you. We and the underwriters take no responsibility for, and can provide no assurances
as to the reliability of, any information that others may give you. This prospectus is not an offer to sell, not is it seeking
an offer to buy, these securities in any jurisdiction where the offer or sale is not permitted. The information contained in this
prospectus or in any free writing prospectus is only accurate as of its date, regardless of its time of delivery or the time of
any sale of our common stock. Our business, financial condition, results of operations and prospects may have changed since that
date.
We
own or have rights to various trademarks, service marks and trade names that we use in connection with the operation of our business.
This prospectus may also contain trademarks, service marks and trade names of third parties, which are the property of their respective
owners. Our use or display of third parties' trademarks, service marks and trade names or products in this prospectus is
not intended to, and does not imply a relationship with, or endorsement or sponsorship by us. Solely for convenience, the trademarks,
service marks and trade names referred to in this prospectus may appear without the ®, TM or SM symbols, but the omission
of such references is not intended to indicate, in any way, that we will assert, to the fullest extent under applicable law, our
rights or the right of the applicable owner of these trademarks, service marks and trade names.
For
investors outside the United States
: Neither we nor any of the underwriters have done anything that would permit this offering
or possession or distribution of this prospectus or any free writing prospectus we may provide to you in connection with this
offering in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside the United
States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the
offering of the shares of our common stock and the distribution of this prospectus and any such free writing prospectus outside
of the United States.
Numerical
figures included in this prospectus have been subject to rounding adjustments. Accordingly, numerical figures shown as totals
in various tables may not be arithmetic aggregations of the figures that precede them.
The
market data and certain other statistical information used throughout this prospectus are based on independent industry publications,
governmental publications, reports by market research firms or other independent sources that we believe to be reliable sources.
Industry publications and third-party research, surveys and studies generally indicate that their information has been obtained
from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. We are
responsible for all of the disclosure contained in this prospectus, and we believe these industry publications and third-party
research, surveys and studies are reliable. While we are not aware of any misstatements regarding any third-party information
presented in this prospectus, their estimates, in particular, as they relate to projections, involve numerous assumptions, are
subject to risks and uncertainties, and are subject to change based on various factors, including those discussed under the section
entitled "Risk Factors" and elsewhere in this prospectus. Some data are also based on our good faith estimates.
ii
PROSPECTUS
SUMMARY
This
summary highlights information contained in greater detail elsewhere in this prospectus. Because it is a summary, it does not
contain all of the information that you should consider in making your investment decision. Before investing in our common stock,
you should carefully read this prospectus in its entirety, including the "Risk Factors," "Special Note Regarding
Forward Looking Statements," and "Management's Discussion and Analysis of Financial Condition and Results of
Operations" and the financial statements and the notes to those financial statements in each case included in this prospectus.
As
used in this prospectus, unless the context otherwise requires, references to "AppTech," the "company,"
"we," "us" and "our" refer to AppTech Corp., and its wholly owned, consolidated subsidiaries,
or either or all of them as the context may require.
Our
Company
Overview
We intend to simplify
and streamline digital financial services for corporations, small and midsized businesses ("SMBs") and consumers
through innovative payment processing and digital banking technologies that complement our core merchant services capabilities.
Our company's merchant services provide financial processing for businesses to accept cashless and/or contactless payments,
such as credit cards, ACH, wireless payments, and more. Our patented, exclusively licensed and/or proprietary merchant services
software offers or will offer integrated solutions for frictionless digital and mobile payment acceptance; we are supplementing
these capabilities with licensed software that solves for multi-use case, multi-channel, API-driven, account-based issuer processing
for card, digital tokens, and payment transfer transactions. Our innovative and scalable business model allows for expansive white
labeling, SaaS, and embedded payment solutions that will drive the digital transformation of financial services and generate diverse
revenue streams for our company.
We
believe the financial services industry is going through a period of intensive change driven by the advancement of technology,
the adaption to societal changes and the rapid rise of contactless transactions. End-users are beginning to expect ease of use
and an enhanced user experience in all of their daily financial transactions. In this rapidly evolving digital marketplace merchants
have broad and frequently changing requirements for payment processing. Our flexible and configurable technologies enable us to
provide solutions that meet each merchant's current needs while providing scope to solve for their future development plans
and opportunities. By taking a holistic view of all aspects of our clients' business, including risk, volume, user experience,
integration capabilities and technical needs, we are able to create optimal and extensible processing solutions. Merchants are
now concerned with achieving added-value and no longer make payment partner decisions solely on lowest processing prices. While
we are able to offer extremely competitive pricing, we believe the value we create for merchants, SMEs and regional banking institutions
through our technology, services and consultative approach will create true differentiation from our competitors. As we shift
our focus technological advancement, we will continue to aggressively seek new merchants.
Through exclusive
licensing and partnership agreements, we believe we will become leaders in the processing technology industry by supporting digital,
tokenized, multi-channel, embedded API-driven transactions. We will augment this position through the integration of our merchant
services and secure text payment solution with extensive digital account-based and multi-channel issuer payment processing capabilities.
This will enable us to provide our merchant customers an end-to-end payment acceptance and digital banking solution and will power
straight-through processing and embedded payments opportunities in the B2B space.
A
key to the company's success and market penetration relies on the continued development of enterprise-grade, patent protected
software
f
or
SMS text payments via a
mobile device. Our patented technology
manages
text
messaging
for processing payments notification,
response,
authentication, marketing, advertising,
information queries
and
reports.
Our
software platforms will extend
merchants'
marketplace
creating
new
avenues and channels to request and
receive frictionless, digital payments and
engage end-users utilizing a familiar, convenient and widely adopted technology.
1
Once
an account is established through our multi-currency digital wallet, internet connectivity or a specific application are not required
to process payments between merchants and end-users. These features will be particularly beneficial for the unbanked and underbanked
individuals in developing and emerging markets where access to internet on a mobile device and modern banking institutions may
not be readily available.
We
believe
our
technologies
will greatly
increase the adoption of mobile payments and alternate banking solutions in a sector that appears to have little alternative but
to adapt and migrate towards new technologies that facilitate convenient and safe contactless payments.
To
survive and
succeed in this environment, businesses may
need to adopt
new
technologies
to engage, communicate and process payments
with
their
customers.
We believe that by embracing technological advancement in the payment and banking industries we are aligned in the
precise
direction that our current and prospective customer base is trending towards, and we intend for
our current and future
products to be at the forefront in providing solutions that enable and facilitate these anticipated changes.
We
are also expanding upon our financial technology foundation into the telehealth and remote patient monitoring sectors in response
to cultural shifts and new healthcare demands of society. We have identified a need for the integration of payment acceptance
technologies into the burgeoning telehealth sector. We believe this sector's focus is on providing health-related telecommunications
but how fees and payments for these services are requested and accepted is being overlooked. We intend to fill this identified
shortfall by developing technologies and payment-related services to aid companies providing telehealth solutions. Through a strategic
partnership, help bring to market personal emergency response and remote patient monitoring services and equipment help ensure
the safety of the elderly and injured or sick patients while providing peace of mind to family members, care givers and retirement
communities. These solutions increase patient's access to comprehensive care options and allow medical teams to intervene
in a timely manner to avoid more serious health concerns. By providing financial and administrative services we will have the
opportunity to receive substantial revenue share from recurring revenue billed through Medicare with the potential for substantial
growth and substantial profit margins.
Industry
Background
The financial technology
and transaction processing industries are an integral part of today's worldwide financial structure. The electronic payments
industry is massive, with growth fueled by powerful long-term trends that continue to increase the acceptance and use of electronic
payments compared to paper-based payments. According to The Nilson Report, purchase volume on credit, debit and prepaid cards
in the United States was approximately $6.1 trillion in 2018 and is estimated to reach nearly $10.4 trillion by 2027, a compound
annual growth rate, or CAGR, of 6.1%.
The
payment processing industry continues to evolve rapidly, based on the application of new technology and changing customer needs.
Changes in technology allow for new payment methods, such as mobile payments, and merchants increasingly need new methods of interacting
with their customers to ensure loyalty and repeat business. As consumers continue to integrate mobile devices into their lives,
there will be increased demand to conduct business on these devices. According to Businesswire, the global mobile payment market
was valued at $1449.56 billion in 2020 and is expected to reach over $5399.6 billion in 2026 with growth at a CAGR of 24.5% over
the forecast period (2021 - 2026).
GSMA
Intelligence reported in 2019 that globally, there are more than 9.2 billion mobile connections and 5.1 billion mobile subscribers
with text messaging capabilities. Statista asserted that just over 3.9 billion of these devices have access to mobile internet.
According
to 2019 PEW Research Report, even though consumers remain somewhat skeptical of newer financial technologies growth in the mobile
payment sector persists. Consumers' age and the technologies' reliance on traditional financial systems may explain
lack of mobile payment adoption. As businesses adopt mobile payment solutions in response to user demand, they need to better
educate their customers on the security of mobile payments. According to creditcards.com, consumers need to recognize that mobile
payment methods offered by major providers are more secure than physical cards and cash because mobile wallets use methods such
as encryption and tokenization to mask payment card account numbers as you enter them and when you pay. Nonetheless, consumer
satisfaction is high with mobile payments. In fact, Accenture reports that most mobile payments users are satisfied—76%
are happy using mobile banking apps to make payments.
Telehealth uses
information and communication technology to overcome distance barriers and improve access to healthcare. According to Fortune
Business Insights, the global telehealth market size was valued at $61.40 billion in 2019 and is projected to reach $559.52 billion
by 2027, exhibiting a CAGR of 25.2% during the forecast period. Reports and Data reported the remote patient monitoring market
is forecast to reach $2.14 billion by 2027 with a CAGR of 14.1%.
2
Our
Competitive Strengths
We believe our
adaptable technology and holistic product offering differentiate ourselves from our competitors. Our products, many of which have
the ability to be launched in a matter of months, help to eliminate much of our sector's reliance on legacy payment rails
and financial systems. By not being restricted by antiquated foundational technology the applicability and frictionless of our
products will have the ability to have an immediate impact on digital financial services industry. Further, while technologically
advanced, the products will be comfortable to end-users allowing for a seamless adoption.
The patent protection
to some of our products is also not commonplace within the fintech industry. This protection prevents competitors from trying
to replicate our products in order to carve away at our anticipated market share. Therefore, backing our text payment and lead
generation products with patents strengthens the viability of such products by limiting direct competition.
Our patent protected
text payment system's anticipated capabilities also set us apart. By creating a product that permits mobile payments without
the need to for a data plan, internet or an application, we will have the unique ability to target unbanked and underbanked individuals
primarily in developing or emerging markets. Integrating consumers that are not traditionally included in the payment space will
allow us to have a larger potential market than many of our competitors.
The features and
capabilities of products we intend to bring to market allow for agile transaction processing which supports API-driven, multi-channel
and secure products. The ability for such products to be embedded into other technologies while supporting multi-currency transactions
set our anticipated suite of products apart from established fintech companies.
Our
Growth Strategy
We intend to grow
through levering our existing IP, partnering with strategic partners that have unique technology that complements the core businesses
of the company as well as through selective acquisition. From traditional merchant accounts to customizable inbound and outbound
payment solutions, we intend to modernize and enhance the payment processing and digital banking capabilities for businesses throughout
the world. Our business objective is to generate revenues based on licensing fees, synergistic product lines, processing fees,
SaaS distribution and continual advancement of our IP portfolio.
Our target market
is SMBs seeking to broaden their distribution through the addition of digital payment channels, and SMBs looking
to create competitive advantage by advancing their integration and streamlining of their payment processing services and financial
institutions looking to enhance their customer's user experience through the development of innovative and user centric
multi-channel, multi-currency, digital financial products. We intend to utilize a white-label SaaS delivery model, which will
allow for service fees, revenue sharing and back-end processing fees. Further, by offering SMBs a full array of lead generation
services, merchant services processing and digital banking technologies, we will allow them to better interact with their customers
and provide additional, dynamic means of processing both inbound and outbound payments. SMBs generally lack the resources of large
enterprises to invest heavily in technology. As a result, they are more dependent on service providers, such as us, to handle
critical functions including payment acceptance and other support services and are likely to be early adopters of new services
that will further increase their efficiency and drive growth.
3
Businesses'
financial technology needs are increasingly complex. As electronic and mobile commerce continues to grow, businesses have no alternative
but to use technology to better reach their customers. We believe by delivering novel, adaptive products meet their financial
services needs it will result in rapid market penetration for our anticipated products launches.
While leveraging
new technology is vital to our growth plan, it is equally important that technology is relevant and seamlessly fits into and benefits
our end-user's everyday life. Consumers are sometimes reluctant to alter their typical routines, especially when it relates
to financial services. The anticipated launch of our text payment system and broader digital banking and payments solutions will
meet both these needs. We will offer payment acceptance technologies that do not rely on legacy payment rails while allowing the
end-user to transact frictionless and secure payments with the comfort of text messaging. Once properly developed and rolled out,
we anticipate rapid adoption.
We
seek to grow our business by pursuing the following strategies:
●
Increasing
                                         our customer base by offering unique and compelling, patent protected technology solutions;
●
Driving
                                         growth in our merchant services business through new and flexible technologies, including
                                         our secure text payment system, that will enable our customers to adapt to a rapidly
                                         changing marketplace;
●
Rolling-out
                                         our
API-driven, account-based, issuer processing
                                         solution for card, digital token, and payment transfer transactions that will enable
                                         us to target multi-currency and multi-channel digital banking and embedded B2B payment
                                         opportunities
;
●
Engaging
                                         end-users via lead generation and text marketing services to enable businesses to better
                                         communicate with their customers and integrate our full suite of products;
●
Maintaining
                                         technological leadership by continuing to innovate and improve our technology;
●
Pursuing
                                         strategic acquisitions or partnerships to complement and bolster our suite of fintech
                                         products;
●
Creating
                                         cross-selling synergies through white labeling or SaaS distribution enabling us to provide
                                         a holistic suite of products and services to merchants, banking institutions and SMEs;
●
Utilizing
                                         a scalable business model to eliminate certain barriers to rapid growth; and
●
Expanding
                                         into the telehealth sector by offering advanced remote patient monitoring technologies.
Vital to our future
success is the market penetration of our current and future products. Our market penetration strategy includes four elements:
(1) royalty-free licenses; (2) engaging close industry contacts; (3) utilizing potential market share shifting IP; and (4) illustrating
the need for our fintech products amongst our target industry segments.
At the outset,
to gain a foothold, we plan to offer royalty-free licenses for our text messaging and complimentary payment solutions in exchange
for the processing the related payments. By incentivizing potential clients with free access to advanced, patented technology,
we will give clients the ability to bolster and enhance their fintech capabilities, while creating revenue streams for our full
suite of products.
With
years of fintech experience, management believes we can leverage our industry contacts and past clients in order to gain valuable
contracts with businesses. Engaging individuals with the ability to integrate our products may prove invaluable. Further, through
our channel partnerships, we have an expansive network of potential clients to integrate our technology into their payment processing
needs.
Management
believes there are substantial opportunities in emerging and developing markets for our anticipated products. Our mobile payment
and digital banking solutions offer innovative avenues to unbanked and underbanked communities to transact and provide remittances.
Further, since internet connectivity is not required for our text payment solution, individuals with limited internet access will
still be able transact. These two factors have the ability to open our products to markets with immense growth potential.
4
Companies
are regularly attempting to identify ways to stay in contact with their customers and create new payment channels. Our products
do precisely this. When customers sign up for our secure text payment system, clients will have the ability to integrate a text
messaging waiver into the registration process. This allows for clients to have fresh, opted-in contact information which can
be paired with our text messaging services for notification, response, authentication, marketing, advertising, information queries
and reports. It is our intent to market these identifiable benefits to companies in order to illustrate the advantages of partnering
with us. Specific industries that could utilize our secure text payment system are pharmacies, collection agencies, charitable
and religious organizations, utility companies, property management companies and any business that relies upon recurring business.
Our partnership
with NEC Payments' internationally experienced and proven team of subject matter experts will enable our management to focus
resources on delivering growth using the strategies described above with full confidence that the business is being powered by
innovative technology IP running on robust, secure and scalable highly-available cloud infrastructure.
Management
believes our partnership with Silver Alert Services, LLC is the initial foothold for our expansion in the telehealth sector. Our
strategic partnership providing financial services in support of their remote patient monitoring devices has the opportunity
to create substantial revenue. However, with the emergence of new telehealth platforms and the rapid shift towards e-visits,
many of which require private payer model, we believe our payment acceptance technology, specifically our embedded
capabilities will have widespread application in the sector.
Risks
Associated with our Business
An
investment in our common stock involves a high degree of risk. You should carefully consider the risks summarized below. These
risks are discussed more fully in the section titled "Risk Factors" following this prospectus summary. These risks
include, but are not limited to, the following:
●
uncertainty
associated
with
anticipated
launch
of
our
text payment platform and other potential advanced payment solutions we intend to launch in the future;
●
substantial
    investment and costs associated with new potential revenue streams and their corresponding contractual obligations;
●
dependence on third-party
channel
and
referral
partners,
who
    comprise
a
significant
portion of
our
    sales force, for
gaining new clients;
●
a
slowdown
or reduction
in
our
sales
in
due
to a reduction
in
end user
demand, unanticipated
competition,
regulatory issues, or
other
        unexpected circumstances;
●
uncertainty
    regarding our ability to achieve profitability and positive cash flow through the commercialization of the products we offer
    or intend to offer in the future;
●
dependence
    on third-party payment processors to facilitate our merchant services capabilities;
●
delay
    in or failure to obtain regulatory approval of our text payment system or any future products in additional countries;
●
our
    ability to operate our business while timely making payments pursuant to our loan agreements;
●
our
    need to raise additional financing to fund daily operations and successfully grow our Company;
●
our
    ability to retain and recruit appropriate employees, in particular a productive sales force;
●
current
    and future laws and regulations;
5
●
general
    economic uncertainty associated with the COVID-19 pandemic;
●
the
    adverse effects of COVID-19, and its unpredictable duration, in regions where we have customers, employees and distributors;
●
the
    adverse effects of COVID-19 on processing volumes resulting from (a) limitations on in-person access to our merchants'
    businesses or (b) the unwillingness of customers to visit our merchants' businesses;
●
the
    possibility that the economic impact of COVID-19 will lead to changes in how consumers make purchases and we are unable to
    monetize such changes;
●
the
    possibility that the economic impact of COVID-19, and its associated high unemployment rate, will lead to less consumer spending
    thus resulting in loss of revenues;
●
●
the
        possibility that the economic impact of COVID-19, will result in our merchants' businesses failing to reopen once
        restrictions are further eased; and
the
        other factors described in "Risk Factors."
Reverse
Stock Split
We
will effect a reverse stock split of our common stock at a ratio of 1-for-      following the
effectiveness of the registration statement of which this prospectus forms a part and prior to the closing of this offering. No
fractional shares will be issued in connection with the reverse stock split and all such fractional interests will be rounded
up to the nearest whole number of shares of common stock. The conversion or exercise prices of our issued and outstanding convertible
securities, stock options and warrants will be adjusted accordingly. All information presented in this prospectus other than in
our consolidated financial statements and the notes thereto assumes a 1-for- reverse stock split of our outstanding shares of
common stock, and unless otherwise indicated, all such amounts and corresponding conversion price or exercise price data set forth
in this prospectus have been adjusted to give effect to such assumed reverse stock split.
Corporate
Information
We
were originally formed as a Florida corporation on July 02, 1998 as Health Express USA, Inc. On August 29, 2005 we changed our
name to CSI Business, Inc and reincorporated as a Nevada corporation. On September 15, 2006 we changed our name to Natural Nutrition
Inc. On October 27, 2009 we changed our name to AppTech Corp. We filed Articles of Domestication to change the domicile of the
Company from Nevada to Wyoming on July 18, 2011. Our principal executive offices are located at 5876 Owens Avenue, Suite 100,
Carlsbad, California 92008. Our phone number is (760) 707-5959. Our website address is www.apptechcorp.com. We do not incorporate
the information on or accessible through our website to be part of this prospectus. We have included our website address in this
prospectus solely as an inactive textual reference.
Implications
of Being a Smaller Reporting Company
We
are a "smaller reporting company" as defined in the Exchange Act. We may take advantage of certain of the scaled disclosures
available to smaller reporting companies until the fiscal year following the determination that our voting and non-voting common
stock held by non-affiliates is more than $250 million measured on the last business day of our second fiscal quarter,
or our annual revenues are less than $100 million during the most recently completed fiscal year and our voting and non-voting common
stock held by non-affiliates is less than $700 million measured on the last business day of our second fiscal quarter.
6
THE
OFFERING
Common
    stock offered by us:
Shares
Common
                                         stock to be outstanding immediately
this offering:
Shares
    (             shares if the underwriters exercise their option to purchase additional shares in full)
Underwriters'
    option to purchase additional shares from us:
We
    have granted the underwriters a [45-day] option to purchase up to an aggregate of     additional
    shares of common stock from us at the public offering price, less underwriting discounts and commissions, on the same terms
    as set forth in this prospectus.
Use
    of proceeds:
We
    estimate that we will receive net proceeds from this offering of approximately $         million,
    or approximately $       million if the underwriters exercise their option to purchase
    additional shares in full, assuming an initial public offering price of $        per share,
    the most recent reported closing price of our common stock, and after deducting estimated underwriting discounts and commissions
    and estimated offering expenses payable by us. We currently intend to use the net proceeds from this offering, together with
    our existing cash, to fund the research and development of our technologies, expand our marketing efforts and for general
    working capital purposes. See "Use of Proceeds" below.
Dividend
    policy:
We
    do not currently intend to pay dividends on our common stock.
Risk
    factors:
An
    investment in our common stock involves a high degree of risk. You should read this prospectus carefully, including the section
    entitled "Risk Factors" and the consolidated financial statements and the related notes to those statements included
    in this prospectus, before investing in our common stock before deciding to invest in shares of our common stock.
Proposed
    Nasdaq Capital Market Symbol
:
"APCX". Our
    common stock is presently quoted on the over the counter markets under the symbol "APCX". We intend to apply to
    list our common stock on The Nasdaq Capital Market under the symbol "APCX". [We will not proceed with this
    offering in the event the common stock is not approved for listing on Nasdaq.]
After
giving effect to the planned reverse stock split of our common stock at a ratio of 1-for
-       
, t
he number of shares of common stock to be outstanding after this offering is based on shares of common stock outstanding
at                  , 2021, and excludes
the following:
●
the
                                         exercise of             outstanding stock options under our stock option plan at
                                         a weighted average exercise price of $           
                                         per share; and
●
shares available for grant under our stock option plan.
Unless
otherwise indicated, all information in this prospectus reflects or assumes:
●
no
                                         exercise by the underwriters of their option to purchase up to                  
                                         additional shares of common stock in this offering.
7
SUMMARY
FINANCIAL DATA
Management's
Discussion and Analysis of Financial Condition and Results of Operations, our consolidated financial statements and notes thereto,
and other financial information are included elsewhere in this prospectus. The statement of operations data for the years ended
December 31, 2018 and 2019 have been derived from our audited consolidated financial statements included elsewhere in this prospectus.
The statement of operations data for the nine months ended September 30, 2019 and 2020 and the balance sheet data as of September
30, 2020 have been derived from our unaudited consolidated financial statements included elsewhere in this prospectus. In the
opinion of management, the unaudited financial statements include all adjustments, consisting of only normal and recurring adjustments,
necessary for a fair presentation of such financial data. Our historical results are not necessarily indicative of our results
in any future period and results from our interim period may not necessarily be indicative of the results of the entire year.
Pro forma share and per share amounts presented herein reflect the implementation of the 1-for-            
reverse stock split as if it had occurred at the beginning of the earliest period presented.
Consolidated
Statements of Operations – Years Ended December 31, 2019 and 2018
December 31,
December 31,
2019
2018
Revenues
$
256,138
$
253,785
Cost of revenues
101,638
108,389
Gross profit
154,500
145,396
Operating expenses:
General and administrative, including stock based compensation of $91,414 and $1,547,388, respectively
1,020,869
1,912,218
Research and development
82,057
279,685
Total operating expenses
1,102,926
2,191,903
Loss from operations
(948,426
)
(2,046,507
)
Other income (expenses)
Interest expense
(288,784
)
(464,616
)
Other expenses
(106,000
)
—
Total other income (expenses)
(394,784
)
(464,616
)
Loss before provision for income taxes
(1,343,210
)
(2,511,123
)
Provision for income taxes
—
—
Net loss
$
(1,343,210
)
$
(2,511,123
)
Basic and diluted net loss per common share
$
(0.02
)
$
(0.03
)
Weighted-average number of shares used basic and diluted per share amounts
84,473,862
87,346,661
8
Consolidated
Balance Sheets – As of September 30, 2020 and December 31, 2019
September 30, 2020
December 31, 2019
ASSETS
Current assets
Cash
$
46,316
$
24,159
Accounts receivable
38,227
29,836
Deposit escrow
—
25,000
Security deposit
—
5,948
Total current assets
84,543
84,943
Right of use asset
265,120
—
Security deposit
7,536
—
TOTAL ASSETS
$
357,199
$
84,943
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable
$
1,862,643
$
1,707,878
Accrued liabilities
2,552,712
2,334,480
Right of use liability
50,035
—
Stock repurchase liability
430,000
430,000
Loans payable related parties
51,401
93,401
Convertible notes payable
620,000
620,000
Convertible notes payable related parties
372,000
372,000
Notes payable
1,172,281
1,104,081
Notes payable related parties
708,493
708,493
Total current liabilities
7,819,565
7,370,333
Long-term liabilities
Accounts payable
—
160,000
Right of use liability
238,174
—
Total long-term liabilities
238,174
160,000
TOTAL LIABILITIES
8,057,739
7,530,333
Commitments and contingencies (Note 8)
Stockholders' Deficit
Series A preferred stock; $0.001 par value; 100,000 shares authorized; 14 shares issued and outstanding at September 30, 2020 and December 31, 2019
—
—
Common stock, $0.001 par value; 1,000,000,000 shares authorized; 87,821,825 and 84,153,825 and outstanding at September 30, 2020 and December 31, 2019, respectively
87,822
84,154
Additional paid-in capital
35,870,457
33,230,869
Accumulated deficit
(43,658,819
)
(40,760,413
)
Total stockholders' deficit
(7,700,540
)
(7,445,390
)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
$
357,199
$
84,943
9
Consolidated
Statements of Operations – Nine Months Ended September 30, 2020 and 2019
For the Nine Months Ended September 30,
2020
2019
Revenues
$
241,367
$
190,411
Cost of revenues
103,721
75,099
Gross profit
137,646
115,312
Operating expenses:
General and administrative, including stock based compensation of $1,066,386, $46,000, $2,357,125 and $89,134, respectively
2,781,912
743,210
Research and development
49,250
62,350
Total operating expenses
2,831,162
805,560
Loss from operations
(2,693,516
)
(690,248
)
Other income (expenses)
Forgiveness of Debt
9,000
—
Interest expense
(213,890
)
(217,722
)
Total other expenses
(204,890
)
(217,722
)
Loss before provision for income taxes
(2,898,406
)
(907,970
)
Provision for income taxes
—
—
Net loss
$
(2,898,406
)
$
(907,970
)
Basic and diluted net loss per common share
$
(0.03
)
$
(0.01
)
Weighted-average number of shares used basic and diluted per share amounts
85,941,115
84,482,903
10
RISK
FACTORS
An
investment in our common stock is speculative and involves a high degree of risk including the risk of a loss of your entire investment.
You should carefully consider the following risk factors These risk factors contain, in addition to historical information, forward
looking statements that involve risks and uncertainties. Our actual results could differ significantly from the results discussed
in the forward-looking statements. The occurrence of any of the adverse developments described in the following risk factors and
in the documents incorporated herein by reference could materially and adversely harm our business, financial condition, results
of operations or prospects. In such event, the value of our common stock could decline, and you could lose all or a substantial
portion of the money that you pay for our common stock. In addition, the risks and uncertainties discussed below are not the only
ones we face. Our business, financial condition, results of operations or prospects could also be harmed by risks and uncertainties
not currently known to us or that we currently do not believe are material, and these risks and uncertainties could result in
a complete loss of your investment. In assessing the risks and uncertainties described below, you should also refer to the other
information contained in this prospectus (as supplemented or amended).
Risks
Related to Our Company
The
payment processing industry is highly competitive. Such competition could adversely affect the fees we receive, and as a result,
our margins, business, financial condition and results of operations.
The
market for payment processing services is highly competitive and has relatively low barriers to entry. Other providers of payment
processing services have established a sizable market share in the merchant acquiring sector and service more clients than we
do. Our growth will depend, in part, on a combination of the continued growth of the electronic payment market and our ability
to increase our market share through technological advancement.
Our
payment and software solutions compete against many forms of financial services and payment systems, including electronic, mobile
and integrated payment platforms as well as cash and checks. Our competitors include traditional merchant acquirers such as financial
institutions, affiliates of financial institutions and well-established payment processing companies that target our existing
clients and potential clients directly, including Bank of America Merchant Services, Chase Paymentech, Elavon, Inc. (a subsidiary
of U.S. Bancorp), Fiserv, Inc., Global Payments, Inc. and Fidelity National Information. In addition, we compete with vendors
that are specifically targeting ISVs and VARs as distribution partners for their merchant acquiring services, such as Stripe,
Inc., Square, Inc., Toast, Inc., PayPal Holdings, Inc., Braintree (owned by PayPal), Adyen, Ltd., and OpenEdge (a division of
Global Payments).
Many
of our competitors have substantially greater financial, technological, management and marketing resources than we have. Accordingly,
if these competitors specifically target our business model, they may be able to offer more attractive fees or payment terms and
advances to our clients and more attractive compensation to our distribution partners. They also may be able to offer and provide
products and services that we do not offer. There are also a large number of small providers of processing services that provide
various ranges of services to our clients and our potential clients. This competition may effectively limit the prices we can
charge and requires us to control costs aggressively in order to maintain acceptable profit margins. Further, in regard to certain
products, if the use of payment cards other than Visa or Mastercard grows, or if there is increased use of certain debit cards,
our average profit per transaction could be reduced. Competition could also result in a loss of existing distribution partners
and clients and greater difficulty attracting new distribution partners and clients. One or more of these factors could have a
material adverse effect on our business, financial condition and results of operations.
In
addition, we are also subject to risks as a result of changes in business habits of our vendors and customers as they adjust to
the competitive marketplace. For example, consumer behavior may change regarding the use of payment card transactions, including
the relative increased use of cash, crypto-currencies, other emerging or alternative payment methods and payment card systems
that we or our processing partners do not adequately support or that do not provide adequate commissions to parties like us. Any
failure to timely integrate emerging payment methods into our software, to anticipate consumer behavior changes or to contract
with processing partners that support such emerging payment technologies could cause us to lose traction among our customers or
referral sources, including industry associations, resulting in a corresponding loss of revenue, if those methods become popular
among end-users of their services.
11
Our
independent registered public accounting firm's report contains an explanatory paragraph that expresses substantial doubt
about our ability to continue as a "going concern."
We
experienced net losses from operations in the nine-month period ended September 30, 2020 and the fiscal year ended December 31,
2019, and we may continue to incur net losses from operations in the future. The report of our independent registered public accounting
firm on our financial statements as of and for the year ended December 31, 2019 included an explanatory paragraph indicating that
there is substantial doubt about our ability to continue as a going concern. If we are unable to raise sufficient capital in this
offering or otherwise as and when needed, our business, financial condition and results of operations will be materially and adversely
affected, and we will need to significantly modify our operational plans to continue as a going concern. If we are unable to continue
as a going concern, we may have to liquidate our assets, and the values we receive for our assets in liquidation or dissolution
could be significantly lower than the values reflected in our financial statements. The inclusion of a going concern explanatory
paragraph by our independent registered public accounting firm, our lack of cash resources and our potential inability to continue
as a going concern may materially adversely affect our share price and our ability to raise new capital, enter into critical contractual
relations with third parties and otherwise execute our development strategy.
If
we are unable to obtain additional funding when needed, our business operations will be harmed, and if we do obtain additional
financing, our then-existing shareholders may suffer substantial dilution.
As
we take steps in the commercialization and marketing of our technologies, or respond to potential opportunities and/or adverse
events, our working capital needs may change. We anticipate that if our cash and cash equivalents are insufficient to satisfy
our liquidity requirements, we will require additional funding to sustain our ongoing operations and to continue our research
and development activities. Specifically, we have contractual obligations under a license and service agreement with a partner
that requires payment of fees which exceeds our current liquidity. We do not have any contracts or commitments for additional
funding, and there can be no assurance that financing will be available in amounts or on terms acceptable to us, if at all, if
needed. The inability to obtain additional capital will restrict our ability to grow and may reduce our ability to conduct business
operations. If we are unable to obtain additional financing to finance a revised growth plan, we will likely be required to curtail
such plans or cease our business operations. Any additional equity financing may involve substantial dilution to our then existing
shareholders.
The
loss of key personnel or the inability of replacements to quickly and successfully perform in their new roles could adversely
affect our business.
We
depend on the leadership and experience of our relatively small number of key executive management personnel, particularly our
Chairman of the Board, Chief Executive Officer and Chief Investment Officer, Luke D'Angelo, our President and Chief Operating
Officer, Virgilio Llapitan, our Chief Financial Officer, Gary Wachs and our VP of Corporate Development and Corporate Counsel
Jeffrey Moriarty. The loss of the services of any of these key executives or any of our executive management members could have
a material adverse effect on our business and prospects, as we may not be able to find suitable individuals to replace such personnel
on a timely basis or without incurring increased costs, or at all. Furthermore, if we lose or terminate the services of one or
more of our key employees or if one or more of our current or former executives or key employees joins a competitor or otherwise
competes with us, it could impair our business and our ability to successfully implement our business plan. Additionally, if we
are unable to hire qualified replacements for our executive and other key positions in a timely fashion, our ability to execute
our business plan would be harmed. Even if we can quickly hire qualified replacements, we would expect to experience operational
disruptions and inefficiencies during any transition. We believe that our future success will depend on our continued ability
to attract and retain highly skilled and qualified personnel. There is a high level of competition for experienced, successful
personnel in our industry. Our inability to meet our executive staffing requirements in the future could impair our growth and
harm our business.
12
Our
financial statements may be materially affected if our estimates prove to be inaccurate as a result of our limited experience
in making critical accounting estimates.
Financial
statements prepared in accordance with GAAP require the use of estimates, judgments, and assumptions that affect the reported
amounts. Actual results may differ materially from these estimates under different assumptions or conditions. These estimates,
judgments, and assumptions are inherently uncertain, and, if they prove to be wrong, then we face the risk that charges to income
will be required. In addition, because we have limited experience in making these estimates, judgments, and assumptions, the risk
of future charges to income may be greater than if we had more experience in these areas. Any such charges could significantly
harm our business, financial condition, results of operations, and the price of our securities.
An
inability to develop and introduce products in a timely and cost-effective manner may damage our business.
Our
sales and profitability depend on our ability to bring products to market and meet customer demands before they begin to lose
interest in a given product. There is no guarantee that we will be able to develop and source our products in a timely manner
and on a cost-effective basis to meet constantly changing consumer demands. Unforeseen delays or difficulties in the development
process, significant increases in the planned cost of development, and manufacturing delays or changes in anticipated consumer
demand for our products and new brands may cause the introduction date for products to be later than anticipated. They may also
reduce or eliminate the profitability of such products or, in some situations, may cause a product or new brand introduction to
be discontinued.
Our
operating results may fluctuate significantly as a result of a variety of factors, many of which are outside of our control, which
could cause fluctuations in the price of our securities.
We
are subject to the following factors that may negatively affect our operating results:
●
the announcement or introduction
    of new products by our competitors;
●
our ability to upgrade and
    develop our systems and infrastructure to accommodate growth;
●
our
ability to attract and retain key personnel in a timely and cost-effective manner;
●
technical difficulties;
●
the amount and timing of
    operating costs and capital expenditures relating to the expansion of our business, operations, and infrastructure;
●
our ability to identify and
    enter into relationships with appropriate and qualified third-party providers for necessary development and other relevant
    services;
●
regulation by federal, state,
    or local governments;
●
general economic conditions,
    as well as economic conditions specific to payment processing, banking and consumer discretionary spending; and
●
Various risks related to
    health epidemics, pandemics and similar outbreaks, such as the coronavirus pandemic,
    which may have material adverse effects on our business, financial position, results of operations and/or cash flows.
As
a result of our limited historical revenue and the nature of the markets in which we compete, it is difficult for us to forecast
our revenues or earnings accurately. As a strategic response to changes in the competitive environment, we may from time to time
make certain decisions concerning expenditures, pricing, service, or marketing that could have a material and adverse effect on
our business, results of operations, and financial condition. Due to the foregoing factors, our quarterly revenues and operating
results are difficult to forecast.
13
We
face risks related to Coronavirus (COVID-19) which could significantly disrupt our research and development, operations, sales,
and financial results.
Our
business could be further impacted by the effects of the COVID-19. In addition to global macroeconomic effects, the COVID-19 outbreak
and any other related adverse public health developments has caused disruption to our operations and sales activities. Our third-party
vendors, third-party distributors, and our customers have been and will be disrupted by worker absenteeism, quarantines and restrictions
on employees' ability to work, office and factory closures, disruptions to ports and other shipping infrastructure, border
closures, or other travel or health-related restrictions. Depending on the magnitude of such effects on our activities or the
operations of our third-party vendors and third-party distributors, the supply of our products will be delayed, which could adversely
affect our business, operations and customer relationships. In addition, COVID-19 or other disease outbreak will in the short-run
and may over the longer term adversely affect the economies and financial markets of many countries, resulting in an economic
downturn that will affect demand for our products and services and impact our operating results. There can be no assurance that
any decrease in sales resulting from COVID-19 will be offset by increased sales in subsequent periods. Although the magnitude
of the impact of the COVID-19 outbreak on our business and operations remains uncertain, the continued spread of COVID-19 or the
occurrence of other epidemics and the imposition of related public health measures and travel and business restrictions will adversely
impact our business, financial condition, operating results and cash flows. In addition, we have experienced and will experience
disruptions to our business operations resulting from quarantines, self-isolations, or other movement and restrictions on the
ability of our employees to perform their jobs that may impact our ability to develop and design our products and services in
a timely manner or meet required milestones or customer commitments.
To
acquire and retain clients, we depend in part on channel partners that generally do not serve us exclusively, may not aggressively
market our products and services, are subject to attrition and are not under our control.
We
intend to rely on the efforts of our channel partners to market our products and services, such as our merchant services, secure
text payments, digital banking and lead generation, to existing clients and potential clients. Generally, our agreements with
channel partners are not exclusive and these partners retain the right to refer potential clients to other merchant acquirers.
Gaining and maintaining loyalty or exclusivity may require financial concessions to maintain current channel partners or to attract
potential channel partners from our competitors who may be offering significantly more enticing pricing terms, such as increased
signing bonuses or residuals payable to our referral partners, which could have a negative impact on our results of operations.
If these channel partners switch to another merchant acquirer, focus more heavily on promoting the products and services of one
or more other merchant acquirers, cease operations or become insolvent, we may no longer receive new referrals from them or may
receive fewer new referrals from them, and we also risk losing existing clients with whom the channel partner has a relationship.
Additionally,
some of our channel partners are subject to the requirements imposed by our bank sponsors, which may result in fines to them for
non-compliance and may, in some cases, result in these entities ceasing to market our products and services. If we are unable
to maintain our existing base of channel partners or develop relationships with new channel partners, our business, financial
condition and results of operations would be materially adversely affected. Our channel partners are independent businesses and
we have no control over their day-to-day business activities, including their client marketing and solicitation practices.
Further,
we may be named in legal proceedings in connection with the actions of our channel partners where it is alleged that our channel
partners have intentionally or negligently misrepresented pricing or other contractual terms to clients or potential clients related
to our processing solutions or related products. While in some cases we may have indemnification rights against our channel partners
for these activities, there is no guarantee that we will be able to successfully enforce those indemnification rights or that
our channel partners are adequately capitalized in a manner necessary to satisfy their indemnification obligations to us. If one
or more judgments or settlements in any litigation or other investigation, plus related defense and investigation costs, significantly
exceed our insurance coverage and we are unable to enforce our indemnification rights against a channel partner or partners, our
business, financial condition and results of operations could materially suffer.
14
Unauthorized
disclosure, destruction or modification of data or disruption of our services could expose us to liability, protracted and costly
litigation and damage our reputation.
We
and other third parties collect, process, and transmit sensitive data, such as names, addresses, social security numbers, credit
or debit card numbers and expiration dates, drivers' license numbers and bank account numbers, and we have ultimate liability
to the payment networks and member financial institutions that register us with the payment networks for our failure, or the failure
of certain channel partners and third parties with whom we contract, to protect this data in accordance with payment network requirements.
Some of our merchants and channel partners may store such data. The loss, destruction or unauthorized modification of client or
cardholder data could result in significant fines, sanctions and proceedings or actions against us by the payment networks, governmental
bodies, consumers or others, which could have a material adverse effect on our business, financial condition and results of operations.
Any such proceeding or action could damage our reputation, force us to incur significant expenses in defense of these proceedings,
distract our management, increase our costs of doing business and may result in the imposition of monetary liability.
We
could be subject to breaches of security by hackers. Although we proactively employ multiple measures to defend our systems against
intrusions and attacks and to protect the data we collect, our measures may not prevent unauthorized access or use of sensitive
data. A breach of our system or a third-party system upon which we rely may subject us to material losses or liability, including
payment network fines, assessments and claims for unauthorized purchases with misappropriated credit, debit or card information,
impersonation or other similar fraud claims. Although we have not to date incurred material losses or liabilities as a result
of breaches, a future breach of our system may subject us to material losses or liability, including payment of fines and claims
for unauthorized purchases with misappropriated credit or debit card or bank account information or other similar fraud claims.
A misuse of such data or a cybersecurity breach could harm our reputation and deter clients from using electronic payments generally
and our services specifically, increase our operating expenses in order to correct the breaches or failures, expose us to uninsured
liability, increase our risk of regulatory scrutiny, subject us to lawsuits and/or result in the imposition of material penalties
and fines under applicable laws or by our clients.
If
we or our bank sponsors fail to adhere to the standards of Visa and MasterCard, we could be fined, suspended, or our registrations
with these organizations could be terminated and we could be required to stop providing payment processing services for Visa and
MasterCard.
We
are not a bank and are unable to belong to and attain direct membership to Visa and MasterCard. Visa and MasterCard operating
regulations require us to be sponsored by a bank in order to process bankcard transactions. We are currently registered with Visa
and MasterCard through the sponsorship from banks that are members of the card brands. If we or our bank sponsors fail to comply
with the applicable requirements of the Visa or MasterCard payment card brands, Visa or MasterCard could suspend or terminate
our registration. The termination of our registration or any changes in the Visa or MasterCard rules that would impair our registration
could prevent us from providing transactional processing services. If our sponsorships are terminated and we are not able to secure
or successfully migrate merchant portfolios to new bank sponsors, we will not be able to conduct our business.
We
rely on bank sponsors, which have substantial discretion with respect to certain elements of our business practices.
Some
agreements with our bank sponsors give them substantial discretion in approving certain aspects of our business practices, including
our solicitation, application and qualification procedures for clients and the terms of our agreements with clients. Our bank
sponsors' discretionary actions under these agreements could have a material adverse effect on our business, financial condition,
and results of operations.
15
We
may face significant chargeback liability if our merchant clients refuse or cannot reimburse chargebacks resolved in favor of
their customers and may not accurately anticipate these liabilities.
We
have potential liability for chargebacks associated with our clients' processing transactions. In most circumstances, if
a billing dispute between a client and a cardholder is not ultimately resolved in favor of our client, the disputed transaction
is "charged back" to the client's bank and credited to the account of the cardholder. Anytime our client is
unable to satisfy a chargeback, we are responsible for that chargeback.
We
are potentially liable for losses caused by fraudulent credit card transactions. Card fraud occurs when a client's customer
uses a stolen card (or a stolen card number in a card-not-present transaction) to purchase merchandise or services. In a traditional
card-present transaction, if the client swipes the card, receives authorization for the transaction from the card issuing bank
and verifies the signature on the back of the card against the paper receipt signed by the customer, the card issuing bank remains
liable for any loss. In a fraudulent card-not-present transaction, even if the client receives authorization for the transaction,
the client is liable for any loss arising from the transaction. Many of the SMBs clients that we serve are small and transact
a substantial percentage of their sales over the Internet. Because their sales are card-not-present transactions, these clients
are more vulnerable to customer fraud than larger clients
Business
fraud occurs when a business or organization, rather than a cardholder, knowingly uses a stolen or counterfeit card or card number
to record a false sales transaction, or intentionally fails to deliver the merchandise or services sold in an otherwise valid
transaction. Business fraud also occurs when employees of businesses change the business demand deposit accounts to their personal
bank account numbers, so that payments are improperly credited to the employee's personal account. Incidents of fraud could
increase in the future. Failure to effectively manage risk and prevent fraud could increase our chargeback liability and other
liability.
We
periodically experience increases in interchange and other related costs, and if we cannot pass these increases along to our merchants,
our profit margins will decline.
We
pay interchange fees or assessments to issuing banks through the card associations for each transaction that is processed using
their credit and debit cards. From time to time, the card associations increase the interchange fees that they charge processors
and the sponsoring banks. At their sole discretion, our sponsoring banks have the right to pass any increases in interchange fees
on to us. In addition, our sponsoring banks may seek to increase their sponsorship fees charged to us, all of which are based
upon the dollar amount of the payment transactions we process. If we are not able to pass these fee increases along to clients
through corresponding increases in our processing fees, our profit margins will be reduced.
Our
system and our third-party providers' systems may fail which could adversely affect our business.
Our
systems and operations or those of our third-party technology vendors could be exposed to damage or interruption from, among other
things, fire, natural disaster, power loss, telecommunications failure, unauthorized entry, computer viruses, denial-of-service
attacks, acts of terrorism, human error, vandalism or sabotage, financial insolvency and similar events. Defects in our systems
or those of third parties, errors or delays in the processing of payment transactions, telecommunications failures or other difficulties
could result in: loss of revenues; loss of clients; loss of client and cardholder data; fines imposed by payment networks; harm
to our business or reputation resulting from negative publicity; exposure to fraud losses or other liabilities; additional operating
and development costs; or diversion of management, technical and other resources, among other consequences.
16
We
are subject to economic and political risk, the business cycles of our customers and software integration partners and the overall
level of consumer and commercial spending, which could negatively impact our business, financial condition and results of operations.
The
electronic payment industry depends heavily on the overall level of consumer and commercial spending. We are exposed to general
economic conditions that affect consumer confidence, consumer spending, consumer discretionary income and changes in consumer
purchasing habits, including natural disasters and health emergencies, including earthquakes, fires, power outages, typhoons,
floods, pandemics or epidemics such as the coronavirus and manmade events such as civil unrest, labor disruption, international
trade disputes, international conflicts, terrorism, wars and critical infrastructure attacks. A sustained deterioration in general
economic conditions, particularly in the United States, or increases in interest rates, could adversely affect our financial performance
by reducing the number or aggregate volume of transactions made using electronic payments. For example, the recent COVID-19 coronavirus
outbreak has impacted the global economy and negatively affected various aspects of our business, including reductions in the
amount of consumer spending and lending which resulted in a decrease in our revenue and profits. If our customers make fewer sales
of products and services using electronic payments, or consumers spend less money through electronic payments, we will have fewer
transactions to process at lower dollar amounts, resulting in lower revenue.
A
weakening in the economy could have a negative impact on our customers, as well as their customers who purchase products and services
using the payment processing systems to which we provide access, which could, in turn, negatively affect our business, financial
condition and results of operations. For example, in the primary vertical markets that we serve, merchants are affected by macroeconomic
conditions such as employment, personal income and consumer sentiment. If economic conditions deteriorate and our customers experience
decreased demand for their products or services, we would experience a decrease both in volume and number of transactions processed.
In addition, a weakening in the economy could force merchants to close at higher than historical rates in part because many of
them are not as well capitalized as larger organizations, which could expose us to potential credit losses and future transaction
declines. Further, credit card issuers may reduce credit limits and become more selective in their card issuance practices. We
also have a certain amount of fixed and semi-fixed costs, including rent, debt service and salaries, which could limit our ability
to quickly adjust costs and respond to changes in our business and the economy.
Changes
in tax laws or their judicial or administrative interpretations, or becoming subject to additional U.S., state or local taxes
that cannot be passed through to our customers, could negatively affect our business, financial condition and results of operations.
Our
operations are subject to extensive tax liabilities, including federal and state and transactional taxes such as excise, sales/use,
payroll, franchise, withholding, and ad valorem taxes. Changes in tax laws or their judicial or administrative interpretations
could decrease the amount of revenues we receive, the value of any tax loss carryforwards and tax credits recorded on our balance
sheet and the amount of our cash flow and may have a material adverse impact on our business, financial condition and results
of operations. Some of our tax liabilities are subject to periodic audits by the applicable taxing authority which could increase
our tax liabilities. Furthermore, companies in the payment processing industry, including us, may become subject to incremental
taxation in various taxing jurisdictions. Taxing jurisdictions have not yet adopted uniform positions on this topic. If we are
required to pay additional taxes and are unable to pass the tax expense through to our customers, our costs would increase and
our net income would be reduced, which could have a material adverse effect on our business, financial condition and results of
operations.
Low
demand for new products and the inability to develop and introduce new products at favorable margins could adversely impact our
performance and prospects for future growth.
Our
competitive advantage is due in part to our intentions to develop and introduce new products in a timely manner at favorable margins.
The uncertainties associated with developing and introducing new products, such as market demand and costs of development and
production, may impede the successful development and introduction of new products on a consistent basis. Introduction of new
technology may result in higher costs to us than that of the technology replaced. That increase in costs, which may continue indefinitely
or until increased demand and greater availability in the sources of the new technology drive down its cost, could adversely affect
our results of operations. Market acceptance of the new products scheduled for introduction in future years may not meet sales
expectations due to various factors, such as the failure to accurately predict market demand, end-user preferences, evolving industry
standards, or the emergence of new or disruptive technologies. Moreover, the ultimate success and profitability of the new products
may depend on our ability to resolve technical and technological challenges in a timely and cost-effective manner, and to achieve
software development efficiencies. Our investments in productive capacity and commitments to fund advertising and product promotions
in connection with these new products could erode profits if those expectations are not met.
17
We
are increasingly dependent on information technology, and potential cyberattacks, security problems, or other disruption and expanding
social media vehicles present new risks.
We
rely on information technology networks and systems, including the internet, to process, transmit, and store electronic information,
and to manage or support a variety of business processes, including financial transactions and records, billing, and operating
data. We may purchase some of our information technology from vendors, on whom our systems will depend, and we rely on commercially
available systems, software, tools, and monitoring to provide security for processing, transmission, and storage of confidential
operator and other customer information. We depend upon the secure transmission of this information over public networks. Our
networks and storage applications could be subject to unauthorized access by hackers or others through cyberattacks, which are
rapidly evolving and becoming increasingly sophisticated, or by other means, or may be breached due to operator error, malfeasance
or other system disruptions. In some cases, it will be difficult to anticipate or immediately detect such incidents and the damage
they cause. Any significant breakdown, invasion, destruction, interruption, or leakage of information from our systems could harm
our reputation and business.
We
could face substantial competition, which could reduce our market share and negatively impact our net revenue.
There
are a number of companies that distribute products similar to ours. Many of our anticipated competitors are significantly larger
than we are and have considerably greater financial, technical, marketing, and other resources than we do. Some competitors may
have a lower cost of funds and access to funding sources that are not available to us. We cannot assure you that the competitive
pressures we face will not have a material adverse effect on our business, financial condition, and results of operations.
If
we fail to protect our intellectual property rights, competitors may be able to use our technology, which could weaken our competitive
position, reduce our net revenue, and increase our costs.
Our
long-term success will depend to some degree on our ability to protect the proprietary technology that we have developed or may
develop or acquire in the future. While our patents may offer some protection, our intellectual property rights may not be sufficiently
comprehensive to prevent our competitors from developing similar competitive products. Although we may aggressively pursue anyone
whom we reasonably believe is infringing upon our intellectual property rights, initiating and maintaining suits against third
parties that may infringe upon our intellectual property rights will require substantial financial resources. We may not have
the financial resources to bring such suits, and if we do bring such suits, we may not prevail. Regardless of our success in any
such actions, we could incur significant expenses in connection with such suits.
Third-party
claims of infringement against us could adversely affect our ability to market our products and require us to redesign our products
or seek licenses from third parties.
We
may be susceptible to intellectual property lawsuits that could cause us to incur substantial costs, pay substantial damages,
or prohibit us from distributing our products. Whether a product infringes a patent involves complex legal and factual issues,
the determination of which is often uncertain. If any of our products infringe a valid patent, we could be prevented from distributing
that product unless and until we can obtain a license or redesign it to avoid infringement. A license may not be available or
may require us to pay substantial royalties. We also may not be successful in any attempt to redesign the product to avoid any
infringement. Infringement and other intellectual property claims, with or without merit, can be expensive and time-consuming
to litigate, and we may not have the financial and human resources to defend ourselves against any infringement suits that may
be brought against us.
18
Risks
Related to Regulation
New
and potential government regulations could adversely affect our ability to provide, or impair the value of, the services we currently
provide to our merchants.
We
are subject to numerous federal and state regulations that affect the electronic payments industry. Regulation of our industry
has increased significantly in recent years and is constantly evolving. Changes to statutes, regulations or industry standards,
including interpretation and implementation of statutes, regulations or standards, could increase our cost of doing business or
affect the competitive balance. We are also subject to U.S. financial services regulations, numerous consumer protection laws,
escheat regulations and privacy and information security regulations, among other laws, rules and regulations. Failure to comply
with regulations may have an adverse effect on our business, including the limitation, suspension or termination of services provided
to, or by, third parties, and the imposition of penalties or fines. To the extent these regulations negatively impact the business,
operations or financial condition of our clients, our business and results of operations could be materially and adversely affected
because, among other matters, our clients could have less capacity to purchase products and services from us, could decide to
avoid or abandon certain lines of business, or could seek to pass on increased costs to us by negotiating price reductions. We
could be required to invest a significant amount of time and resources to comply with additional regulations or oversight or to
modify the manner in which we contract with or provide products and services to our clients; and those regulations could
directly or indirectly limit how much we can charge for our services. We may not be able to update our existing products and services,
or develop new ones, to satisfy our clients' needs. Any of these events, if realized, could have a material adverse effect
on our business, results of operations and financial condition.
These
and other laws and regulations, even if not directed at us, may require us to make significant efforts to change our products
and services and may require that we incur additional compliance costs and change how we price our products and services to our
clients and distribution partners. Implementing new compliance efforts is difficult because of the complexity of new regulatory
requirements, and we are devoting and will continue to devote significant resources to ensure compliance. Furthermore, regulatory
actions may cause changes in business practices by us and other industry participants which could affect how we market, price
and distribute our products and services, and which could materially adversely affect our business, financial condition and results
of operations. In addition, even an inadvertent failure to comply with laws and regulations, as well as rapidly evolving social
expectations of corporate fairness, could damage our business or our reputation.
Compliance
with the Dodd-Frank Act and other federal and state regulations may increase our compliance costs, limit our revenues and otherwise
negatively affect our business.
Since
the enactment of the Dodd-Frank Act, there have been substantial reforms to the supervision and operation of the financial services
industry, including numerous new regulations that have imposed compliance costs and, in some cases, limited revenue sources for
us and our financial institution partners and clients. Among other things, the Dodd-Frank Act established the Consumer Financial
Protection Bureau ("CFPB"), which is empowered to conduct rule-making and supervision related to, and enforcement
of, federal consumer financial protection laws. The CFPB has issued guidance that applies to "supervised service providers,"
which the CFPB has defined to include service providers, like us, to CFPB supervised banks and nonbanks. In addition, federal
and state agencies have recently proposed or enacted cybersecurity regulations, such as the Cybersecurity Requirements for Financial
Services Companies issued by the New York State Department of Financial Services and the Advance Notice of Proposed Rulemaking
on Enhanced Cyber Risk Management Standards issued by The Board of Governors of the Federal Reserve System, the Office of the
Comptroller of the Currency and the Federal Deposit Insurance Corporation in October 2016. Such cybersecurity regulations are
applicable to large bank holding companies and their subsidiaries, as well as to service providers to those organizations. Any
new rules and regulations implemented by the CFPB, state or other authorities or in connection with the Dodd-Frank Act could,
among other things, slow our ability to adapt to a rapidly changing industry, require us to make significant additional investments
to comply with them, redirect time and resources to compliance obligations, modify our products or services or the manner in which
they are provided, or limit or change the amount or types of revenue we are able to generate.
Interchange
fees, which the payment processor typically pays to the card issuer in connection with credit and debit card transactions, are
subject to increasingly intense legal, regulatory and legislative scrutiny. In particular, the Dodd-Frank Act regulates and limits
debit card fees charged by certain card issuers and allows businesses and organizations to set minimum dollar amounts for the
acceptance of credit cards. Specifically, under the so-called "Durbin Amendment" to the Dodd-Frank Act, the interchange
fees that certain issuers charge businesses and organizations for debit transactions are regulated by the Federal Reserve and
must be "reasonable and proportional" to the cost incurred by the issuer in authorizing, clearing and settling the
transactions. Rules released by the Federal Reserve in July 2011 to implement the Durbin Amendment mandate a cap on debit transaction
interchange fees for card issuers with assets of $10 billion or greater. Since October 2011, a payment network may not prohibit
a card issuer from contracting with any other payment network for the processing of electronic debit transactions involving the
card issuer's debit cards, and card issuers and payment networks may not inhibit the ability of businesses and organizations
to direct the routing of debit card transactions over any payment networks that can process the transactions.
Rules
implementing the Dodd-Frank Act also contain certain prohibitions on payment network exclusivity and merchant routing restrictions.
These restrictions could negatively affect the number of debit transactions processed, and prices charged per transaction, which
would negatively affect our business.
19
We
must comply with laws and regulations prohibiting unfair or deceptive acts or practices, and any failure to do so could materially
and adversely affect our business.
We
and many of our customers are subject to Section 5 of the Federal Trade Commission Act prohibiting unfair or deceptive acts or
practices and various state laws that are similar in scope and subject matter. In addition, provisions of the Dodd-Frank Act that
prohibit unfair, deceptive or abusive acts or practices, the Telemarketing Sales Act and other laws, rules and/or regulations,
may directly impact the activities of certain customers of ours, and in some cases may subject us, as the electronic payment processor
or provider of payment settlement services, to investigations, fees, fines and disgorgement of funds if we are found to have improperly aided
and abetted or otherwise provided the means and instrumentalities to facilitate the illegal or improper activities of a customer
through our services. Various federal and state regulatory enforcement agencies, including the Federal Trade Commission and state
attorneys general have authority to take action against non-banks that engage in UDAAP, or violate other laws, rules and regulations.
To the extent we are processing payments or providing products and services for a customer suspected of violating such laws, rules
and regulations, we may face enforcement actions and incur losses and liabilities that may adversely affect our business.
Governmental
regulations designed to protect or limit access to or use of consumer information could adversely affect our ability to effectively
provide our products and services.
In
addition to those regulations discussed previously that are imposed by the card networks and NACHA, governmental bodies in the
United States have adopted, or are considering the adoption of, laws and regulations restricting the use, collection, storage,
transfer and disposal of, and requiring safeguarding of, non-public personal information. Our operations are subject to certain
provisions of these laws. Relevant federal privacy laws include the Family Educational Rights and Privacy Act of 1974, the Protection
of Pupil Rights Amendment and the Gramm-Leach-Bliley Act of 1999, which applies directly to a broad range of financial institutions
and indirectly, or in some instances directly, to companies that provide services to financial institutions. The U.S. Children's
Online Privacy Protection Act also regulates the collection of information by operators of websites and other electronic solutions
that are directed to children under 13 years of age. These laws and regulations restrict our collection, processing, storage,
use and disclosure of personal information, may require us to notify individuals of our privacy practices and provide individuals
with certain rights to prevent the use and disclosure of protected information, and mandate certain procedures with respect to
safeguarding and proper description of stored information. Certain state laws impose similar privacy obligations as well as obligations
to provide notification of security breaches of personal information to affected individuals, state officers, consumer reporting
agencies and businesses and governmental agencies. The applicable regulatory framework for privacy issues is evolving and is likely
to continue doing so for the foreseeable future, which creates uncertainty. For example, the California Consumer Privacy Act (CCPA)
of 2018, which became effective January 1, 2020, imposes more stringent requirements with respect to California data privacy.
The CCPA includes provisions that give California residents expanded rights to access and delete certain personal information,
opt out of certain personal information sharing, and receive detailed information about how certain personal information is used.
Further,
we are obligated, or will be obligated, by our customers, sponsor banks and software integration partners to maintain the confidentiality
and security of non-public consumer information that our customers and their end customers share with us. Our contracts may require
periodic audits by independent parties regarding our compliance with applicable standards, and may permit our counterparties to
audit our compliance with best practices established by regulatory guidelines with respect to confidentiality and security of
non-public personal information. Our ability to maintain compliance with these standards and satisfy these audits will affect
our ability to attract, grow and maintain business in the future, and any failure to do so could subject us to contractual liability,
each of which could have a material effect on our business and results of operations.
If
we fail to comply with these laws, regulations or contractual terms, or if we experience security breaches, we could face regulatory
enforcement proceedings, suits for breach of contract and monetary liabilities. Additionally, any such failure could harm the
relationships and reputation we depend on to retain existing customers and software integration partners and obtain new customers
and software integration partners. If federal and state governmental bodies adopt more restrictive privacy laws in the future,
our compliance costs could increase, and it could make our due diligence reviews and monitoring regarding the risk of our customers
more difficult, complex and expensive. As our business grows, we may also be required to invest in a more substantive and complex
compliance management system than the one we currently employ.
20
United
States federal legislation and international laws impose certain obligations on the senders of commercial emails, which could
minimize the effectiveness of our platform, and establish financial penalties for non-compliance, which could increase the costs
of our business.
The
Federal Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003, or the CAN-SPAM Act, establishes certain
requirements for commercial email messages and transactional email messages and specifies penalties for the transmission of email
messages that are intended to deceive the recipient as to source or content. Among other things, the CAN-SPAM Act, obligates the
sender of commercial emails to provide recipients with the ability to "opt-out" of receiving future commercial emails
from the sender. In addition, some states have passed laws regulating commercial email practices that are significantly more restrictive
and difficult to comply with than the CAN-SPAM Act. If we were found to be in violation of the CAN-SPAM Act, applicable state
laws governing email not preempted by the CAN-SPAM Act or foreign laws regulating the distribution of email, whether as a result
of violations by our customers or our own acts or omissions, we could be required to pay large penalties, which would adversely
affect our financial condition, significantly harm our business, injure our reputation and erode customer trust. The terms of
any injunctions, judgments, consent decrees or settlement agreements entered into in connection with enforcement actions or investigations
against our company in connection with any of the foregoing laws may also require us to change one or more aspects of the way
we operate our business, which could impair our ability to attract and retain customers or could increase our operating costs.
If
we fail to comply with the Telephone Consumer Protection Act, or the TCPA, we may face significant damages, which could harm our
business, financial condition, results of operations and cash flows.
We
utilize and/or intend to utilize telephone calls and text messaging as a means of responding to customer interest, lead generation
and our text payment platform. We generate leads from our website by prompting potential customers to provide their phone numbers
so that we may contact them in response to their interest in specific vehicles. We also intend to engage and pay third parties
to provide us with leads.
The
TCPA, as interpreted and implemented by the FCC, imposes significant restrictions on utilization of telephone calls and text messages
to residential and mobile telephone numbers as a means of communication, when the prior consent of the person being contacted
has not been obtained. Violations of the TCPA may be enforced by the FCC or by individuals through litigation, including class
actions and statutory penalties for TCPA violations ranging from $500 to $1,500 per violation, which is often interpreted to mean
per phone call.
While
we intend to implement processes and procedures to comply with the TCPA, any failure by us or the third parties on which we rely
for data to adhere to, or successfully implement, appropriate processes and procedures in response to existing or future regulations
could result in legal and monetary liability, fines and penalties, or damage to our reputation in the marketplace, any of which
could have a material adverse effect on our business, financial condition and results of operations. Additionally, any changes
to the TCPA or its interpretation that further restrict the way we contact and communicate with our potential customers or generate
leads, or any governmental or private enforcement actions related thereto, could adversely affect our ability to attract customers
and harm our business, financial condition, results of operations and cash flows.
21
Risks
Related to this Offering and Our Securities
Shares
eligible for future sale may have adverse effects on our share price.
Sales
of substantial amounts of shares or the perception that such sales could occur may adversely affect the prevailing market price
for our shares. We may issue additional shares in subsequent public offerings or private placements to make new investments or
for other purposes. Therefore, it may not be possible for existing shareholders to participate in such future share issuances,
which may dilute the existing shareholders' interests in us.
If
we fail to comply with the rules and regulations under the Sarbanes-Oxley Act, our operating results, our ability to operate our
business and investors' views of us may be harmed.
Section 404
of the Sarbanes-Oxley Act requires public companies to conduct an annual review and evaluation of their internal controls. Ensuring
that we have adequate internal financial and accounting controls and procedures in place so that we can produce accurate financial
statements on a timely basis is a costly and time-consuming effort that will need to be evaluated frequently. As of December 31,
2019, the Company's Principal Financial and Accounting Officer concluded that, as of the end of such period, the Company's
disclosure controls and procedures were not effective to provide reasonable assurance that information that it is required to
disclose in reports that the Company files with the SEC is recorded, processed, summarized, and reported within the time periods
specified by the Exchange Act rules and regulations. Our failure to maintain the effectiveness of our internal controls in accordance
with the requirements of the Sarbanes-Oxley Act could have a material adverse effect on our business. We could lose investor confidence
in the accuracy and completeness of our financial reports, which could have an adverse effect on the price of our common stock.
In addition, our efforts to comply with the rules and regulations under the Sarbanes-Oxley or new or changed laws, regulations,
and standards may differ from the activities intended by regulatory or governing bodies due to ambiguities related to practice.
Regulatory authorities may investigate transactions disclosed in our "
Management's Discussion and Analysis of Financial
Condition and Results of Operations
," and if legal proceedings are initiated against us, it may harm our business.
We
do not anticipate paying any cash dividends on our capital stock in the foreseeable future.
We
currently intend to retain all of our future earnings to finance the growth and development of our business, and therefore, we
do not anticipate paying any cash dividends on our capital stock in the foreseeable future. We believe it is likely that our board
of directors will continue to conclude, that it is in the best interests of the Company and its shareholders to retain all earnings
(if any) for the development of our business. In addition, the terms of any future debt agreements may preclude us from paying
dividends. As a result, capital appreciation, if any, of our common stock will be your sole source of gain for the foreseeable
future.
Investors
in this offering will experience immediate and substantial dilution in net tangible book value.
The
public offering price per unit is substantially higher than the net tangible book value per share of our outstanding shares of
common stock. As a result, investors in this offering will incur immediate dilution of $              per share, based on the public offering
price of $               per share. Investors in this
offering will pay a price per unit that substantially exceeds the book value of our assets after subtracting our liabilities.
[To the extent that the warrants sold in this offering are exercised, you will experience further dilution.] See "Dilution"
for a more complete description of how the value of your investment will be diluted upon the completion of this offering.
Immediately
prior to the consummation of this offering, we expect to have approximately outstanding stock options to purchase our Common Stock
with exercise prices that are below the assumed public offering price of our Common Stock. To the extent that these options are
exercised, there will be further dilution.
22
Our
common stock has a limited trading market, which could affect your ability to sell shares of our common stock and the price you
may receive for our common stock.
Our
common stock is currently traded in the over-the-counter market maintained by OTC Markets, Inc. under the symbol "APCX".
However, these markets are an unorganized, inter-dealer, over-the-counter market that provides significantly less liquidity than
Nasdaq or other national securities exchanges, there has been only limited trading activity in our common stock, and we have a
relatively small public float compared to the number of our shares outstanding. Further, while we intend to apply to list our
common stock on the Nasdaq Capital Market, we cannot predict the extent to which investors' interest in our common stock
will provide an active and liquid trading market. If an active trading market for our common stock does not develop or is not
sustained following this offering, you may not be able to sell your shares quickly or at the market price. Our ability to raise
capital to continue to fund operations by selling shares of our common stock and our ability to acquire other companies or technologies
by using shares of our common stock as consideration may also be impaired. This public offering price of our common stock will
be determined by negotiations between us and the underwriters and may not be indicative of the market prices of our common stock
that will prevail in the trading market.
There
can be no assurances that our shares once listed on The Nasdaq Capital Market will not be subject to potential delisting if we
do not continue to maintain the listing requirements of The Nasdaq Capital Market.
We
intend to apply to list the shares of our common stock on The Nasdaq Capital Market, or Nasdaq, under the symbol "APCX ".
An approval of our listing application by Nasdaq will be subject to, among other things, our fulfilling all of the listing requirements
of Nasdaq. In addition, Nasdaq has rules for continued listing, including, without limitation, minimum market capitalization
and other requirements. Failure to maintain our listing (i.e., being de-listed from Nasdaq), would make it more difficult for
shareholders to sell our common stock and more difficult to obtain accurate price quotations on our common stock. This could have
an adverse effect on the price of our common stock. Our ability to issue additional securities for financing or other purposes,
or otherwise to arrange for any financing we may need in the future, may also be materially and adversely affected if our common
stock is not traded on a national securities exchange.
If
we cannot satisfy, or continue to satisfy, the initial listing requirements and other rules of the Nasdaq Capital Market, our
securities may not be listed or may be delisted, which could negatively impact the price of our securities and your ability to
sell them.
We
will seek to have our securities approved for listing on the Nasdaq Capital Market upon consummation of this offering. We cannot
assure you that we will be able to meet those initial listing requirements at that time. Even if our securities are listed on
the Nasdaq Capital Market, we cannot assure you that our securities will continue to be listed on the Nasdaq Capital Market.
In
addition, following this offering, in order to maintain our listing on the Nasdaq Capital Market, we will be required to comply
with certain rules of the Nasdaq Capital Market, including those regarding minimum shareholders' equity, minimum share price,
minimum market value of publicly held shares, and various additional requirements. Even if we initially meet the listing requirements
and other applicable rules of the Nasdaq Capital Market, we may not be able to continue to satisfy these requirements and applicable
rules. If we are unable to satisfy the Nasdaq Capital Market criteria for maintaining our listing, our securities could be subject
to delisting.
If
the Nasdaq Capital Market does not list our securities, or subsequently delists our securities from trading, we could face significant
consequences, including:
●
a limited availability for market quotations
    for our securities;
●
reduced liquidity with respect to our securities;
●
a determination that our Common Stock is a "penny
    stock," which will require brokers trading in our Common Stock to adhere to more stringent rules and possibly result
    in a reduced level of trading activity in the secondary trading market for our Common Stock;
●
limited amount of news and analyst coverage;
    and
●
a
        decreased ability to issue additional securities or obtain additional financing in the future.
23
The
proposed reverse stock split could cause our stock price to decline relative to its value before the split and decrease the liquidity
of shares of our common stock.
We
will effect a 1-for-         reverse stock split of our issued and outstanding
common stock immediately following the effectiveness but prior to the closing of this offering. There is no assurance that that
the reverse stock split will not cause an actual decline in the value of our outstanding common stock. The liquidity of the shares
of our common stock may be affected adversely by the reverse stock split given the reduced number of shares that will be outstanding
following the reverse stock split, especially if the market price of our common stock does not increase as a result of the reverse
stock split. In addition, the reverse stock split may increase the number of stockholders who own odd lots (less than 100 shares)
of our common stock, creating the potential for such stockholders to experience an increase in the cost of selling their shares
and greater difficulty effecting such sales.
Our
executive officers and directors, and their affiliated entities, own a significant percentage of our stock and will be able to
exert significant control over matters subject to stockholder approval.
Upon
consummation of this offering (based on shares outstanding as of       , 2021), our executive
officers and directors, together with entities affiliated with such individuals, will beneficially own approximately         %
of our Common Stock (approximately    % if the underwriters' over-allotment option is exercised in full).
Accordingly, these stockholders may, as a practical matter, continue to be able to exert substantial control of the Company after
this offering. This concentration of ownership could delay or prevent a change in control of the Company.
We
have broad discretion in the use of the net proceeds from this offering and may not use them effectively.
Our
management will have broad discretion in the application of the net proceeds from this offering, including for any of the purposes
described in the section entitled "Use of Proceeds," and you will not have the opportunity as part of your investment
decision to assess whether the net proceeds will be used appropriately. Because of the number and variability of factors that
will determine our use of the net proceeds from this offering, their ultimate use may vary substantially from their currently
intended use. Our management might not apply our net proceeds in ways that ultimately increase the value of your investment. We
currently intend to use the net proceeds from this offering to create and expand business operations and launch new product lines,
provide competitive compensation to attract and retain talented employees, expand sales and marketing of present and future products,
continued research and development and general working capital.
Our
expected use of net proceeds from this offering represents our current intentions based upon our present plans and business condition.
As of the date of this prospectus, we cannot predict with certainty all of the particular uses for the net proceeds to be received
upon the completion of this offering, or the amounts that we will actually spend on the uses set forth above. The amounts and
timing of our actual use of the net proceeds will vary depending on numerous factors, including the commercial success of our
systems and the costs of our research and development activities, as well as the amount of cash used in our operations. As a result,
our management will have broad discretion in the application of the net proceeds, and investors will be relying on our judgment
regarding the application of the net proceeds of this offering.
The
failure by our management to apply these funds effectively could harm our business. Pending their use, we may invest the net proceeds
from this offering in short-term, investment-grade, interest-bearing securities. These investments may not yield a favorable return
to our stockholders. If we do not invest or apply the net proceeds from this offering in ways that enhance stockholder value,
we may fail to achieve expected financial results, which could cause our stock price to decline.
24
Our
officers and directors are entitled to indemnification from us for liabilities under our articles of incorporation, which could
be costly to us and may discourage the exercise of stockholder rights.
Our
articles of incorporation provide that we possess and may exercise all powers of indemnification of our officers, directors, employees,
agents and other persons and our bylaws also require us to indemnify our officers and directors as permitted under the provisions
of the Wyoming Revised Statutes ("WRS"). We also have contractual indemnification obligations under our agreements
with our directors and officers. The foregoing indemnification obligations could result in our company incurring substantial expenditures
to cover the cost of settlement or damage awards against directors and officers. These provisions and resultant costs may also
discourage our company from bringing a lawsuit against directors, officers and employees for breaches of their fiduciary duties,
and may similarly discourage the filing of derivative litigation by our stockholders against our directors, officers and employees
even though such actions, if successful, might otherwise benefit our company and stockholders.
Our
bylaws and Wyoming law may discourage, delay or prevent a change of control of our company or changes in our management, which
could have the result of depressing the trading price of our common stock.
Certain
anti-takeover provisions of Wyoming law could have the effect of delaying or preventing a third party from acquiring us, even
if the acquisition arguably could benefit our stockholders.
Though
not now, we may be or in the future we may become subject to Wyoming's control share law. A corporation is subject to Wyoming's
control share law if it has more than 200 stockholders, at least 100 of whom are stockholders of record and residents of Wyoming,
and it does business in Wyoming or through an affiliated corporation. The law focuses on the acquisition of a "controlling
interest" which means the ownership of outstanding voting shares sufficient, but for the control share law, to enable the
acquiring person to exercise the following proportions of the voting power of the corporation in the election of directors: (i)
one-fifth or more but less than one-third, (ii) one-third or more but less than a majority, or (iii) a majority or more. The ability
to exercise such voting power may be direct or indirect, as well as individual or in association with others.
The
effect of the control share law is that the acquiring person, and those acting in association with it, obtains only such voting
rights in the control shares as are conferred by a resolution of the stockholders of the corporation, approved at a special or
annual meeting of stockholders. The control share law contemplates that voting rights will be considered only once by the other
stockholders. Thus, there is no authority to strip voting rights from the control shares of an acquiring person once those rights
have been approved. If the stockholders do not grant voting rights to the control shares acquired by an acquiring person, those
shares do not become permanent non-voting shares. The acquiring person is free to sell its shares to others. If the buyers of
those shares themselves do not acquire a controlling interest, their shares do not become governed by the control share law.
If
control shares are accorded full voting rights and the acquiring person has acquired control shares with a majority or more of
the voting power, any stockholder of record, other than an acquiring person, who has not voted in favor of approval of voting
rights is entitled to demand fair value for such stockholder's shares.
Wyoming's
control share law may have the effect of discouraging takeovers of the corporation.
In
addition to the control share law, Wyoming has a business combination law which prohibits certain business combinations between
Wyoming corporations and "interested stockholders" for three years after the "interested stockholder"
first becomes an "interested stockholder," unless the corporation's board of directors approves the combination
in advance. For purposes of Wyoming law, an "interested stockholder" is any person who is (i) the beneficial owner,
directly or indirectly, of ten percent or more of the voting power of the outstanding voting shares of the corporation, or (ii)
an affiliate or associate of the corporation and at any time within the three previous years was the beneficial owner, directly
or indirectly, of ten percent or more of the voting power of the then outstanding shares of the corporation. The definition of
the term "business combination" is sufficiently broad to cover virtually any kind of transaction that would allow
a potential acquirer to use the corporation's assets to finance the acquisition or otherwise to benefit its own interests
rather than the interests of the corporation and its other stockholders.
The
effect of Wyoming's business combination law is to potentially discourage parties interested in taking control of our company
from doing so if it cannot obtain the approval of our board of directors.
Various
provisions of our bylaws may delay, defer or prevent a tender offer or takeover attempt of us that a stockholder might consider
in his or her best interest. Our bylaws may be adopted, amended or repealed by the affirmative vote of the holders of at least
a majority of our outstanding shares of capital stock entitled to vote for the election of directors, and except as provided by
Wyoming law, our board of directors shall have the power to adopt, amend or repeal the bylaws by a vote of not less than a majority
of our directors. The interests of these stockholders and directors may not be consistent with your interests, and they may make
changes to the bylaws that are not in line with your concerns.
If
securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our
stock price and trading volume could decline.
The
trading market for our Common Stock will depend in part on the research and reports that securities or industry analysts publish
about us or our business. Securities and industry analysts do not currently, and may never, publish research on our company. If
no securities or industry analysts commence coverage of our company, the trading price for our stock would likely be negatively
impacted. In the event securities or industry analysts initiate coverage, if one or more of the analysts who covers us downgrades
our stock or publishes inaccurate or unfavorable research about our business, our stock price may decline. If one or more of these
analysts ceases coverage of our company or fails to publish reports on us regularly, demand for our stock could decrease, which
might cause our stock price and trading volume to decline.
25
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This
prospectus contains forward-looking statements. Such forward-looking statements include those that express plans, anticipation,
intent, contingency, goals, targets or future development and/or otherwise are not statements of historical fact. These forward-looking
statements are based on our current expectations and projections about future events and they are subject to risks and uncertainties
known and unknown that could cause actual results and developments to differ materially from those expressed or implied in such
statements.
In
some cases, you can identify forward-looking statements by terminology, such as "expects," "anticipates,"
"intends," "estimates," "plans," "believes," "seeks," "may,"
"should," "could" or the negative of such terms or other similar expressions. Accordingly, these statements
involve estimates, assumptions and uncertainties that could cause actual results to differ materially from those expressed in
them. Any forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this prospectus.
You
should not place undue reliance on forward looking statements. The cautionary statements set forth in this prospectus identify
important factors which you should consider in evaluating our forward-looking statements. These risks include, but are not limited
to, the following:
●
uncertainty
associated
with
anticipated
launch
of
our
text payment platform and other potential advanced payment solutions we intend to launch in the future;
●
substantial
    investment and costs associated with new potential revenue streams and their corresponding contractual obligations;
●
dependence on third-party
channel
and
referral
partners,
who
    comprise
a
significant
portion of
our
    sales force, for
gaining new clients;
●
a
slowdown
or reduction
in
our
sales
in
due
to a reduction
in
end user
demand, unanticipated
competition,
regulatory issues, or
other
        unexpected circumstances;
●
uncertainty
    regarding our ability to achieve profitability and positive cash flow through the commercialization of the products we offer
    or intend to offer in the future;
●
dependence
    on third-party payment processors to facilitate our merchant services capabilities;
●
delay
    in or failure to obtain regulatory approval of our text payment system or any future products in additional countries;
●
our
    ability to operate our business while timely making payments pursuant to our loan agreements;
●
our
    need to raise additional financing to fund daily operations and successfully grow our Company;
●
our
    ability to retain and recruit appropriate employees, in particular a productive sales force;
●
current
    and future laws and regulations;
●
general
    economic uncertainty associated with the COVID-19 pandemic;
●
the
    adverse effects of COVID-19, and its unpredictable duration, in regions where we have customers, employees and distributors;
●
the
    adverse effects of COVID-19 on processing volumes resulting from (a) limitations on in-person access to our merchants'
    businesses or (b) the unwillingness of customers to visit our merchants' businesses;
●
the
    possibility that the economic impact of COVID-19 will lead to changes in how consumers make purchases and we are unable to
    monetize such changes;
●
the
    possibility that the economic impact of COVID-19, and its associated high unemployment rate, will lead to less consumer spending
    thus resulting in loss of revenues;
●
the
        possibility that the economic impact of COVID-19, will result in our merchants' businesses failing to reopen once
        restrictions are further eased; and
●
the
        other factors described in "Risk Factors."
26
You
should read this prospectus (as it may be supplemented or amended) and the documents that we reference herein and therein and
have filed as exhibits to the registration statement, of which this prospectus is part, completely and with the understanding
that our actual future results may be materially different from what we expect. You should assume that the information
appearing in this prospectus is accurate as of the date on the front cover of this prospectus only. Because the risk factors
referred to above, as well as the Risk Factors beginning on page 11 of this prospectus, could cause actual
results or outcomes to differ materially from those expressed in any forward-looking statements made by us or on our behalf,
you should not place undue reliance on any forward-looking statements. Further, any forward-looking statement speaks only as
of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or
circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. New factors
emerge from time to time, and it is not possible for us to predict which factors will arise. In addition, we cannot assess
the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any forward-looking statements. We qualify all of the information
presented in this prospectus, and particularly our forward-looking statements, by these cautionary statements.
Except
to the extent required by applicable laws or rules, we undertake no obligation to publicly update or revise any forward-looking
statement, whether written or oral, that may be made from time to time, whether as a result of new information, future events
or otherwise. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are
expressly qualified in their entirety by the cautionary statements contained above and throughout this prospectus and in the documents
incorporated by reference in this prospectus. We qualify all of our forward-looking statements by these cautionary statements.
IN
ADDITION TO THE ABOVE RISKS, BUSINESSES ARE OFTEN SUBJECT TO RISKS NOT FORESEEN OR FULLY APPRECIATED BY MANAGEMENT. IN REVIEWING
THIS PROSPECTUS AND THE DOCUMENTS INCORPORATED BY REFERENCE IN THIS PROSPECTUS, POTENTIAL INVESTORS SHOULD KEEP IN MIND THAT THERE
MAY BE OTHER POSSIBLE RISKS THAT COULD BE IMPORTANT.
EXPLANATORY
NOTE REGARDING REVERSE STOCK SPLIT
We
will effect a reverse stock split of our common stock at a ratio of 1-for-      following the
effectiveness of the registration statement of which this prospectus forms a part and prior to the closing of this offering. No
fractional shares will be issued in connection with the reverse stock split and all such fractional interests will be rounded
up to the nearest whole number of shares of common stock. The conversion or exercise prices of our issued and outstanding convertible
securities, stock options and warrants will be adjusted accordingly. All information presented in this prospectus other than in
our financial statements and the notes thereto assumes a 1-for-       reverse stock split
of our outstanding shares of common stock, and unless otherwise indicated, all such amounts and corresponding conversion price
or exercise price data set forth in this prospectus have been adjusted to give effect to such assumed reverse stock split.
27
USE
OF PROCEEDS
We
estimate that we will receive net proceeds of approximately $        million from the
sale of the shares of common stock offered in this offering, or approximately $       
million if the underwriters exercise their over-allotment option in full, and after deducting the underwriting discounts and commissions
and estimated offering expenses payable by us.
We
currently anticipate an approximate allocation of to use the net proceeds from this offering, together with our existing cash
as follows :
Digital Banking & Payment Acceptance Business Expansion (Including Partnership, Licensing and Development costs)
$
Telehealth and Remote Patient Monitoring Business Expansion
$
Research and Development
$
Sales and Marketing
$
Payment of Underwriting and Placement commissions as well as offering expenses
$
Working Capital, Accrued Salaries and Operating Expenses
$
We
may change the amount of net proceeds to be used specifically for any of the foregoing purposes. The amounts and timing of our
actual expenditures will depend upon numerous factors, including our sales and marketing and commercialization efforts, demand
for our products, our operating costs and the other factors described under "Risk Factors" in this prospectus. Accordingly,
our management will have significant discretion and flexibility in applying the net proceeds from this offering. Pending any use,
as described above, we intend to invest the net proceeds in high-quality, short-term, interest-bearing securities.
Although
we may use a portion of the net proceeds of this offering for the acquisition or licensing, as the case may be, of additional
technologies, other assets or businesses, or for other strategic investments or opportunities, we have no current understandings,
agreements or commitments to do so beyond the itemized expansion costs listed above.
28
MARKET
FOR OUR COMMON STOCK
Prior
to this offering, shares of our common stock were quoted on the OTC Markets under the symbol "APCX." Although our
shares have been quoted on the OTC Markets since 201
0,
because trading on the OTC
Markets has been infrequent and limited in volume, the prices at which such transactions occurred may not necessarily reflect
the price that would be paid for our common stock in a more liquid market. As of February 12, 2021, there were approximately 368
record holders of our common stock and an estimated 1236 beneficial holders of our common stock.
Trading
activity for our common stock can be found at www.otcmarkets.com.
We
intend to apply to list our common stock on the Nasdaq Capital Market under the symbol "APCX." However, we cannot
assure you that a liquid trading market for our common stock will develop or be sustained after this offering. You may not be
able to sell your shares quickly or at the market price if trading in our common stock is not active. See "Underwriters"
for more information regarding our arrangements with the underwriters and the factors considered in setting the initial public
offering price.
29
DIVIDEND
POLICY
We
currently intend to retain all available funds and any future earnings to support our operations and finance the growth and development
of our business, and therefore do not intend to pay cash dividends on our common stock for the foreseeable future. Any future
determination related to our dividend policy will be made at the discretion of our board of directors and will depend on, among
other factors, our results of operations, financial condition, capital requirements, contractual restrictions, business prospects
and other factors our board of directors may deem relevant. Investors should not purchase our common stock with the expectation
of receiving cash dividends.
30
CAPITALIZATION
The
following table sets forth our capitalization as of September 30, 2020:
●
on
                                         an actual basis; and
●
on
                                         an as-adjusted basis to reflect the issuance and sale by us of shares of our common stock
                                         in this offering at the assumed public offering price of $        per share after deducting
                                         underwriting discounts and commissions and estimated offering expenses payable by us
                                         and the receipt by us of the proceeds of such sale.
You
should read this information together with the section titled "Management's Discussion and Analysis of Financial Condition
and Results of Operations" and our consolidated financial statements and related notes included elsewhere in this prospectus.
As of September 30, 2020
Actual
As Adjusted
(unaudited)
(unaudited)
Cash and cash equivalents
$
46,316
$
Long-term debt, net
$
238,174
$
Stockholders' equity:
Common stock, $0.001 par value; 1,000,000,000 shares authorized, 88,724,075  shares issued and outstanding (actual);         _______ shares issued and outstanding (as adjusted)
87,822
Additional paid-in capital
35,870,457
Non-controlling interest in subsidiary
Accumulated deficit
(43,658,819
)
Total shareholders' equity
(7,700,540
)
Total capitalization
$
357,199
$
After
giving effect to the planned reverse stock split of our common stock at a ratio of 1-for-          , the number of shares of common stock
to be outstanding after this offering is based on shares of common stock outstanding at             , 2021, and excludes the following:
●
the
                                         exercise of           outstanding stock options under our stock option plan at a weighted average
                                         exercise price of $         per share; and
●
shares
                                         available for grant under our stock option plan.
Unless
otherwise indicated, all information in this prospectus reflects or assumes:
●
no
                                         exercise by the underwriters of their option to purchase up to                  
                                         additional shares of common stock in this offering.
(See
"Prospectus Summary—The Offering" above for information on shares of common stock, options and warrants as of
September 30, 2020.)
31
DILUTION
If you invest in our
common stock in this offering, your ownership interest will be immediately diluted to the extent of the difference between the
public offering price per share of our common stock and the as adjusted net tangible book value per share of our common stock
immediately after this offering.
As
of September 30, 2020, our historical net tangible book value (deficit) was $ (7.7) million, or $ (          ) per share
of our common stock. Net tangible book value (deficit) per share represents our total tangible assets (total assets less intangible
assets) less total liabilities and convertible preferred stock, divided by the total number of our outstanding shares of common
stock as of September 30, 2020.
After
giving effect to the sale and issuance of              shares of common
stock in this offering, at the assumed initial public offering price of $             per
share, the most recent reported sale price of our common stock on                   , 2021, after deducting estimated underwriting discounts and
commissions and estimated offering expenses payable by us, our as adjusted net tangible book value as of September 30, 2020 would
have been approximately $             million, or $             per
share of our common stock. This represents an immediate increase in net tangible book value of approximately $             per
share to our existing stockholders and an immediate dilution of $             per
share to new investors.
Dilution
per share to investors participating in this offering is determined by subtracting as adjusted net tangible book value per share
after this offering from the initial public offering price per share paid by investors participating in this offering. The following
table illustrates this dilution (without giving effect to any exercise by the underwriters of their option to purchase additional
shares):
Assumed
public
    offering price per share
Historical net tangible book value per share as of September 30, 2020
Net tangible book value per share as of September 30, 2020, before giving effect to this offering
Increase in net tangible book value per share attributable to investors participating in this offering
As adjusted net tangible book value per share immediately after this offering
Dilution in as adjusted net tangible book value per share to new investors participating in this offering
The
dilution information discussed above is illustrative and will change based on the actual public offering price and other
terms of this offering determined at pricing. If the underwriters exercise their option to purchase additional shares in full,
our as adjusted net tangible book value per share after this offering would be approximately $            
per share, and the dilution in as adjusted net tangible book value per share to new investors participating in this offering would
be $             per share.
An
increase (decrease) in the assumed initial public offering price of $            
per share, would increase (decrease) the as adjusted net tangible book value by $             per
share and the dilution to investors participating in this offering by $             per
share, assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after
deducting estimated underwriting discounts and commissions and estimated expenses payable by us.
Similarly,
each increase (decrease) of one million shares in the number of shares offered by us in this offering would increase (decrease)
the as adjusted net tangible book value by $             per share
and the dilution to investors participating in this offering by $             per
share, assuming the assumed initial public offering price of $             per
share, remains the same, assuming the number of shares sold in the concurrent private placements are decreased (increased) accordingly
and after deducting estimated underwriting discounts and commissions and estimated expenses payable by us.
32
The
following table summarizes, on an as adjusted basis as of September 30, 2020, the differences between the number of shares of
common stock purchased from us, the total cash consideration and the average price per share paid to us by existing stockholders
and by new investors purchasing shares in this offering at the assumed initial public offering price of $            
per share, before deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. As
the table shows, new investors purchasing shares of common stock in this offering will pay an average price per share substantially
higher than our existing investors paid.
SHARES
TOTAL
AVERAGE
PURCHASED
CONSIDERATION
PRICE PER
NUMBER
PERCENT
AMOUNT
PERCENT
SHARE
Existing stockholders
%
$
%
$
New investors participating in this offering
Total
100
%
$
100
%
If
the underwriters exercise their option to purchase additional shares in full, the number of shares of common stock held by existing
stockholders will be reduced to    % of the total number of shares of common stock to be outstanding after
this offering, and the number of shares of common stock held by investors participating in this offering will be further increased
to     % of the total number of shares of common stock to be outstanding after this offering.
After
giving effect to the planned reverse stock split of our common stock at a ratio of 1-for
-
      , t
he number of shares of common stock to be outstanding after this offering is based on shares of common stock outstanding
at             , 2021, and excludes the following:
●
the exercise of                  outstanding stock options under our stock
option plan at a a weighted average exercise price of $             per share; and
●
shares available for grant under our stock option
plan.
Unless
otherwise indicated, all information in this prospectus reflects or assumes:
●
no
                                         exercise by the underwriters of their option to purchase up to                  
                                         additional shares of common stock in this offering.
To
the extent that outstanding options are exercised or shares are issued under our equity incentive plans, you will experience further
dilution. In addition, we may choose to raise additional capital due to market conditions or strategic considerations even if
we believe we have sufficient funds for our current or future operating plans. To the extent that additional capital is raised
through the sale of equity or convertible debt securities, the issuance of these securities may result in further dilution to
our stockholders.
33
SELECTED
FINANCIAL INFORMATION
The
statements of operations data for the years ended December 31, 2018 and 2019 and the balance sheet data as of December 31,
2018 and 2019 are derived from our audited consolidated financial statements included elsewhere in this prospectus. The statement
of operations data for the nine months ended September 30, 2019 and 2020 and the balance sheet data as of September 30, 2020 have
been derived from our unaudited financial statements appearing at the end of this prospectus and have been prepared on the same
basis as the audited financial statements. You should read this data together with our consolidated financial statements and related
notes included elsewhere in this prospectus and the information under the caption "Management's Discussion and Analysis
of Financial Condition and Results of Operations." Our historical results are not necessarily indicative of the results
to be expected in the future for a full year or any interim period.
Statements
of Operations Data
For
                                         the nine-months ended
September
                                         30, 2020
(unaudited)
For
                                         the year ended
December
                                         31, 2019
(audited)
Revenue
$
241,000
$
256,000
Gross Profit (Loss)
$
138,000
$
155,000
Loss from Operations
$
(2,694,000
)
$
(948,000
)
Other Income (Loss)
$
(205,000
)
$
(395,000
)
Net Income (Loss)
$
(2,898,000
)
$
(1,343,000
)
Net Income (Loss) per basic share
$
(0.03
)
$
(0.02
)
Net Income (Loss) per Diluted Share
The
net income (loss) per basic and diluted share data does not reflect the proposed reverse stock split at a ratio of 1-for-       .
Balance
Sheet Data
As of September 30, 2020 (unaudited)
As of December 31, 2019
(audited)
Current Assets
$
85,000
$
85,000
Total Assets
$
357,000
$
85,000
Total Liabilities
$
8,058,000
$
7,530,000
Total Stockholders' Equity
$
(7,701,000
)
$
(7,445,000
)
34
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You
should read the following discussion and analysis of our financial condition and results of operations together with the "Selected
Financial Information" section of this prospectus and our consolidated financial statements and the related notes appearing
at the end of this prospectus. Some of the information contained in this discussion and analysis or set forth elsewhere in this
prospectus, including information with respect to our plans and strategy for our business and related financing, includes forward-looking
statements that involve risks, uncertainties and assumptions. You should read the "Special Note Regarding Forward-Looking
Statements" and "Risk Factors" sections of this prospectus for a discussion of important factors that could
cause actual results to differ materially from the results described in or implied by the forward-looking statements contained
in the following discussion and analysis. All share and per share amounts presented herein have been restated to reflect the implementation
of the 1-for-        reverse stock split as if it had occurred at the beginning of the earliest period presented, except for amounts
presented in the financial statements and related notes included elsewhere in this prospectus.
Overview
We
intend to simplify and streamline the
digital financial services for corporations, SMEs
and consumers through innovative payment
processing and digital banking technologies that complement
our
core
merchant
services capabilities.
Our
company's merchant
services provide
financial
processing
for
businesses
to accept cashless and/or contactless
payments, such
as credit
cards,
ACH, wireless
payments, and
more. Our
patented, exclusively licensed and/or proprietary merchant services
software offers
or will offer integrated solutions for frictionless digital and mobile payment acceptance; we are supplementing these capabilities
with licensed software that solves for multi-use case, multi-channel, API-driven, account-based issuer processing for card, digital
tokens, and payment transfer transactions.
Our
innovative and scalable business model
allows
for expansive white labeling, SaaS, and embedded payment solutions that will drive the digital transformation of
financial services and generate diverse revenue streams for our company.
Effects
of the COVID-19 Pandemic
The
unprecedented and adverse effects of COVID-19, and its unpredictable duration, in the regions where we have merchants, employees
and consumers has an adverse effect on our processing volume and may in the future have a material adverse effect on our liquidity
and financial condition.
Results
of Operations
This
section includes a summary of our historical results of operations, followed by detailed comparisons of our results for (i) the
nine months ended September 30, 2020 and 2019 and (ii) the years ended December 31, 2019 and 2018. We have derived this data from
our interim and annual consolidated financial statements included elsewhere in this prospectus.
Our
Revenue and Expenses
Revenues
We
devise our revenues by providing financial processing services to businesses.
Expenses
Cost
of Revenue.
Cost of revenue includes costs directly attributable to processing and other services the company provides. These
also include related costs such as residual payments to our business development partners, which are based on a percentage of
the net revenue generated from client referrals.
35
General
and administrative.
General and administrative expenses include professional services, rent and utilities, and other operating
costs.
Research
and development.
Research and development costs include costs of acquiring patents and other unproven technologies, contractor
fees and other costs associated with the development of the SMS short code texting platform, contract and outside services.
Interest
expense, net.
Our interest expense consists of interest on our outstanding indebtedness and amortization of debt issuance
costs.
Key
Operating Metrics
We
evaluate our performance through key operating metrics, including:
●
The dollar
    volume of payments our clients process through us (payment volume); and
●
Period to period merchant
    payment volume attrition
Our
payment volume for the years ended December 31, 2019 and 2018 was $103,389,512 and $107,566,481, respectively. This represents
a period-to-period growth rate of minus 4%. Payment volume reflects the addition of new clients and the same client payment volume
from existing clients, offset by client attrition during the period.
Our
merchant payment volume attrition for the years ended December 31, 2019 and 2018 was $1,409,757 (1.37%) and $2,553,953 (2.44%),
respectively. This represents a period-to-period attrition decrease of 55%.
We
measure period to period merchant payment volume attrition for all clients that were processing with us for the same period in
the prior period. We exclude from our calculations the merchant payment volume from new clients added during the period. We experience
attrition in payment volume as a result of several factors, including business closures and transfers of client's accounts
to our competitors.
We
have one merchant customer, American Residential Warranty Services, that represented approximately 39% of our total revenues in
the year ended December 31, 2019 and approximately 35% in the year ended December 31, 2018. The terms of our agreement with this
entity are industry standard for ACH processing for similar merchants. We do not have a long-term contract with this customer,
and the loss of their business would have a material adverse effect on our business.
Nine
Months Ended September 30, 2020 Compared to Nine Months Ended September 30, 2019
The
Nine Months Ended September 30, 2020
Compared
to the Nine Months Ended September 30, 2019
The
following
table presents our
historical results
of operations
for the
periods indicated:
Nine Months Ended September 30
(in thousands)
2020
2019
Revenue
$
241.3
$
190.4
Cost of revenue
103.7
75.1
Gross profit
137.6
115.3
Operating expenses
General and administrative
2,781.9
743.2
Research and development
49.2
62.4
Total operating expenses
2,831.1
805.6
Loss from operations
(2,693.5
)
(690.3
)
Other expenses
Forgiveness of debt
9.0
Interest expense, net
(213.9
)
(217.7
)
Total other expenses
(204.9
)
(217.7
)
Loss before income taxes
(2,898.4
)
(908.0
)
Provision for income taxes
—
—
Net Loss
$
(2,898.4
)
$
(908.0
)
36
Revenue
Revenue
increased to $241,367 from $190,411, or 27%,
for the
nine months ended September 30,
2020
from
the nine months ended September 30, 2019. This
increase
was
principally driven by
a decrease in processing fees assessed to the Company
.
Cost
of Revenue
Cost
of
revenue
increased to $103,721
from
$75,099,
or
38%,
for the nine months
ended September 30, 2020
from
the nine months
ended September 30,
2019.
This
increase
was
driven primarily
by
increased residual payouts from increased revenue
.
General
and Administrative Expenses
General
and
administrative expenses increased to $2,781,912 from $743,210
for
nine months
ended September 30, 2020
from the
nine months ended September
30, 2019, the increase was
primarily driven
by
stock-based
compensation
due
to
several significant consulting
agreements
for
marketing
and professional related services.
Research
and Development Expenses
Research
and development expenses decreased to $49,250
from
$62,350
for
the nine months
ended September 30,
2020
from the
nine
months
ended September 30, 2019. This
decrease
was
primarily due to
various insignificant factors.
Interest
Expense,
net
Interest
expense, net
decreased to
$213,890
from
$217,722
for the nine months
ended September 30, 2020
from
the nine months
ended September 30, 2019. The decrease was primarily due to various insignificant factors.
37
Year
Ended December 31, 2019 Compared to Year Ended December 31, 2018
Years
Ended December 31, 2019
Compared
to Years Ended December 31, 2018
The
following table presents our historical results of operations for the periods indicated:
Year ended December 31
Change
(in thousands)
2019
2018
Amount
%
Revenue
$
256.1
$
253.8
$
2.3
1
%
Cost of revenue
101.6
108.4
(6.8
)
(6
%)
Gross profit
154.5
145.4
9.1
6
%
Operating expenses
General and administrative
1,020.9
1,912.2
(891.3
)
(47
%)
Research and development
82.0
279.7
197.7
(71
%)
Total operating expenses
1,102.9
2,191.9
(1,089.0
)
(50
%)
Income (loss) from operations
(948.4
)
(2,046.5
)
(1,098.1
)
(54
%)
Other expenses
Other Expenses
106.0
—
106.0
100
%)
Interest expense, net
288.8
464.6
(175.8
)
(38
%)
Total other expenses
394.8
464.6
(69.8
)
(15
%)
Income (loss) before income taxes
(1,343.2
)
(2,511.1
)
(1,167.9
)
(47
%)
Provision for income taxes
Net income (loss)
$
(1,343.2
)
$
(2,511.1
)
$
(1,167.9
)
(47
%)
Revenue
Revenue
increased to $256,138 from $253,785, or 1%, for the year ended December 31, 2019 from the year ended December 31, 2018. This increase
was principally driven by various insignificant factors.
Cost
of Revenue
Cost
of revenue decreased to $101,638 from $108,389, or 6%, for the year ended December 31, 2019 from the year ended December 31, 2018.
This decrease was driven primarily by a significant decrease in merchant fees due to a change in our primary processing partner.
General
and Administrative Expenses
General
and administrative expenses decreased to $1,020,869 from $1,912,218, or 47%, for the year ended December 31, 2019 from the year
ended December 31, 2018. This decrease was primarily driven by elimination of some one-time stock compensation expense due to
the expiration of a significant consulting agreement.
Research
and Development Expenses
Research
and development expenses decreased to $82,057 from $279,685, or 71%, for the year ended December 31, 2019 from the year ended
December 31, 2018. This decrease was primarily due to the decrease in development costs resulting from service agreements related
to the development of our software platforms.
Interest
Expense, net
Interest
expense, net decreased to $288,784 from $464,616, or 38%, for the year ended December 31, 2019 from the year ended December 31,
2018. This decrease was primarily driven by the elimination of one-time interest charges for the amortization of the debt discount
on new related party notes payable and refinancing charges on other notes payable.
Liquidity
and Capital Resources
Nine
Months Ended September 30, 2020 Compared to Nine Months Ended September 30, 2019
Cash
Flows
The
following
table presents a summary of cash
flows
from
operating, investing and financing
activities
for
the following
comparative periods.
Nine Months Ended September 30,
2020
2019
Net cash used in operating activities
$
(303,235
)
$
(593,236
)
Net cash provided by (used in) investing activities
$
23,411
$
(50,000
)
Net cash provided by financing activities
$
301,981
$
735,500
38
Cash
Flow from Operating Activities
Net
cash used
in
operating activities decreased
by $290,001
for the nine months
ended September 30, 2020
from
the
nine months ended September 30,
2019.
This
increase
was
principally
driven
an increase in
accounts payable
.
Cash
Flow from Investing Activities
Net
cash
provided
by
investing activities
increased
by
$73,411
for the nine months
ended September 30, 2020
from
the nine
months
ended September 30, 2019. This
increase was
principally
driven
by
a
refund
of a deposit.
Cash
Flow from Financing Activities
Net
cash
provided
by
financing
activities decreased
by
$433,519
for
the nine months
ended September 30, 2020
from nine
the
months
ended September 30,
2019.
This decrease
was
principally
driven
by decreased proceeds from
the
sale
of common
stock and
decreased proceeds from the sale of repurchase options.
Year
Ended December 31, 2019 Compared to Year Ended December 31, 2018
Cash
Flows
The
following table presents a summary of cash flows from operating, investing and financing activities for the following comparative
periods.
Year
Ended December 31, 2019 and 2018
Year Ended December 31,
2019
2018
Net cash used in operating activities
$
(760,544
)
$
(192,801
)
Net cash used in investing activities
$
(25,000
)
$
(5,948
)
Net cash provided by financing activities
$
808,319
$
173,847
Cash
Flow from Operating Activities
Net
cash used in operating activities increased by $567,743 for the year ended December 31, 2019 from the year ended December 31,
2018. This increase was principally driven by a decrease in equity-based compensation from a significant consulting agreement
in addition to the increase in consulting and professional fees associated with our growth objectives.
Cash
Flow from Investing Activities
Net
cash used in investing activities increased by $19,052 for the year ended December 31, 2019 from the year ended December 31, 2018.
This increase was principally driven by a deposit placed in escrow, which was later agreed to be refunded.
Cash
Flow from Financing Activities
Net
cash provided by financing activities increased by $634,472 for the year ended December 31, 2019 from the year ended December
31, 2018. This increase was principally driven by increased proceeds from assigning our rights to stock repurchase option agreements
to a third parties.
39
Critical
Accounting Policies
Our
discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have
been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and judgments
that affect the reported amounts of assets, liabilities, revenues and expenses. On an ongoing basis, we evaluate our estimates
including those related to revenue recognition, goodwill and intangible assets, derivative financial instruments, and equity-based
compensation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable
under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.
Critical
accounting policies are those that we consider the most critical to understanding our financial condition and results of operations.
The accounting policies we believe to be most critical to understanding our financial condition and results of operations are
discussed below. As of September 30, 2020, there have been no significant changes to our critical accounting estimates, except
as described in Note 2 to our consolidated financial statements.
Off-Balance
Sheet Arrangements
We
do not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured
finance or special purpose entities, that would have been established to facilitate off-balance sheet arrangements (as that term
is defined in Item 303(a)(4)(ii) of Regulation S-K) or other contractually narrow or limited purposes. As such, we are not exposed
to any financing, liquidity, market or credit risk that could arise if we had engaged in those types of relationships. We enter
into guarantees in the ordinary course of business related to the guarantee of our own performance.
40
BUSINESS
Overview
We
intend to simplify and streamline
digital financial services for corporations, SMBs and
consumers through innovative payment
processing and digital banking technologies that complement
our
core
merchant
services capabilities.
Our
company's merchant
services provide
financial
processing
for
businesses
to accept cashless and/or contactless
payments, such
as credit
cards,
ACH, wireless
payments, and
more. Our
patented, exclusively licensed and/or proprietary merchant services
software offers
or will offer integrated solutions for frictionless digital and mobile payment acceptance; we are supplementing these capabilities
with licensed software that solves for multi-use case, multi-channel, API-driven, account-based issuer processing for card, digital
tokens, and payment transfer transactions.
Our
innovative and scalable business model
allows
for expansive white labeling, SaaS, and embedded payment solutions that will drive the digital transformation of
financial services and generate diverse revenue streams for our company.
We
believe the financial services industry is going through a period of intensive change driven by the advancement of technology,
the adaption to societal changes and the rapid rise of contactless transactions. End-users are beginning to expect ease of use
and an enhanced user experience in all of their daily financial transactions. In this rapidly evolving digital marketplace merchants
have broad and frequently changing requirements for payment processing. Our flexible and configurable technologies enable us to
provide solutions that meet each merchant's current needs while providing scope to solve for their future development plans
and opportunities. By taking a holistic view of all aspects of our clients' business, including risk, volume, user experience,
integration capabilities and technical needs, we are able to create optimal and extensible processing solutions. Merchants are
now concerned with achieving added-value and no longer make payment partner decisions solely on lowest processing prices. While
we are able to offer extremely competitive pricing, we believe the value we create for merchants, SMEs and regional banking institutions
through our technology, services and consultative approach will create true differentiation from our competitors. As we shift
our focus technological advancement, we will continue to aggressively seek new merchants.
Through exclusive
licensing and partnership agreements, we believe we will become leaders in the processing technology industry by supporting digital,
tokenized, multi-channel, embedded API-driven transactions. We will augment this position through the integration of our merchant
services and secure text payment solution with extensive digital account-based and multi-channel issuer payment processing capabilities.
This will enable us to provide our merchant customers an end-to-end payment acceptance and digital banking solution and will power
straight-through processing and embedded payments opportunities in the B2B space.
A
key to the company's success and market penetration relies on the continued development of enterprise-grade, patent protected
software
f
or
SMS text payments via a
mobile device. Our patented technology
manages
text
messaging
for processing payments notification,
response,
authentication, marketing, advertising,
information queries
and
reports.
Our
software platforms will extend
merchants'
marketplace
creating
new
avenues and channels to request and
receive frictionless, digital payments and
engage end-users utilizing a familiar, convenient and widely adopted technology.
Once
an account is established through our multi-currency digital wallet, internet connectivity or a specific application are not required
to process payments between merchants and end-users. These features will be particularly beneficial for the unbanked and underbanked
individuals in developing and emerging markets where access to internet on a mobile device and modern banking institutions may
not be readily available.
We
believe
our
technologies
will greatly
increase the adoption of mobile payments and alternate banking solutions in a sector that appears to have little alternative but
to adapt and migrate towards new technologies that facilitate convenient and safe contactless payments.
To
survive and
succeed in this environment, businesses may
need to adopt
new
technologies
to engage, communicate and process payments
with
their
customers.
We believe that by embracing technological advancement in the payment and banking industries we are aligned in the
precise
direction that our current and prospective customer base is trending towards, and we intend for
our current and future
products to be at the forefront in providing solutions that enable and facilitate these anticipated changes.
41
We
are also expanding upon our financial technology foundation into the telehealth and remote patient monitoring sectors in response
to cultural shifts and new healthcare demands of society. We have identified a need for the integration of payment acceptance
technologies into the burgeoning telehealth sector. We believe this sector's focus is on providing health-related telecommunications
but how fees and payments for these services are requested and accepted is being overlooked. We intend to fill this identified
shortfall by developing technologies and payment-related services to aid companies providing telehealth solutions. Through a strategic
partnership, help bring to market personal emergency response and remote patient monitoring services and equipment help ensure
the safety of the elderly and injured or sick patients while providing peace of mind to family members, care givers and retirement
communities. These solutions increase patient's access to comprehensive care options and allow medical teams to intervene
in a timely manner to avoid more serious health concerns. By providing financial and administrative services we will have the
opportunity to receive substantial revenue share from recurring revenue billed through Medicare with the potential for substantial
growth and substantial profit margins.
We are an OTC Markets
traded corporation headquartered in Carlsbad, CA. Our stock trades under the symbol "APCX." We were founded in
1998 as Health Express USA, Inc. Our business went through name changes in 2005 (CSI Business, Inc.), 2006 (Natural Nutrition
Inc.) and 2009 (AppTech Corp.) In 2013, we merged with Transcendent One, Inc., whereby Transcendent One, Inc. and its management
took controlling ownership of the Company. From this point forward, we have operated as a merchant services provider, continuing
the business conducted by Transcendent One, Inc. In 2017, we acquired certain assets from GlobalTel Media, Inc., or GTM, which
included patented, enterprise-grade software for advanced text messaging. In addition to the software and associated databases,
the acquisition included four patents and additional intellectual property for mobile payments and advanced MFA security protocols.
Industry
Background
The financial technology
and transaction processing industries are an integral part of today's worldwide financial structure. The electronic payments
industry is massive, with growth fueled by powerful long-term trends that continue to increase the acceptance and use of electronic
payments compared to paper-based payments. According to The Nilson Report, purchase volume on credit, debit and prepaid cards
in the United States was approximately $6.1 trillion in 2018 and is estimated to reach nearly $10.4 trillion by 2027, a compound
annual growth rate, or CAGR, of 6.1%.
The
payment processing industry continues to evolve rapidly, based on the application of new technology and changing customer needs.
Changes in technology allow for new payment methods, such as mobile payments, and merchants increasingly need new methods of interacting
with their customers to ensure loyalty and repeat business. As consumers continue to integrate mobile devices into their lives,
there will be increased demand to conduct business on these devices. According to Businesswire, the global mobile payment market
was valued at $1449.56 billion in 2020 and is expected to reach over $5399.6 billion in 2026 with growth at a CAGR of 24.5% over
the forecast period (2021 - 2026).
GSMA
Intelligence reported in 2019 that globally, there are more than 9.2 billion mobile connections and 5.1 billion mobile subscribers
with text messaging capabilities. Statista asserted that just over 3.9 billion of these devices have access to mobile internet.
According
to 2019 PEW Research Report, even though consumers remain somewhat skeptical of newer financial technologies growth in the mobile
payment sector persists. Consumers' age and the technologies' reliance on traditional financial systems may explain
lack of mobile payment adoption. As businesses adopt mobile payment solutions in response to user demand, they need to better
educate their customers on the security of mobile payments. According to creditcards.com, consumers need to recognize that mobile
payment methods offered by major providers are more secure than physical cards and cash because mobile wallets use methods such
as encryption and tokenization to mask payment card account numbers as you enter them and when you pay. Nonetheless, consumer
satisfaction is high with mobile payments. In fact, Accenture reports that most mobile payments users are satisfied—76%
are happy using mobile banking apps to make payments.
Telehealth uses
information and communication technology to overcome distance barriers and improve access to healthcare. According to Fortune
Business Insights, the global telehealth market size was valued at $61.40 billion in 2019 and is projected to reach $559.52 billion
by 2027, exhibiting a CAGR of 25.2% during the forecast period. Reports and Data reported the remote patient monitoring market
is forecast to reach $2.14 billion by 2027 with a CAGR of 14.1%.
42
Our
Competitive Strengths
We believe our
adaptable technology and holistic product offering differentiate ourselves from our competitors. Our products, many of which have
the ability to be launched in a matter of months, help to eliminate much of our sector's reliance on legacy payment rails
and financial systems. By not being restricted by antiquated foundational technology the applicability and frictionless of our
products will have the ability to have an immediate impact on digital financial services industry. Further, while technologically
advanced, the products will be comfortable to end-users allowing for a seamless adoption.
The patent protection
to some of our products is also not commonplace within the fintech industry. This protection prevents competitors from trying
to replicate our products in order to carve away at our anticipated market share. Therefore, backing our text payment and lead
generation products with patents strengthens the viability of such products by limiting direct competition.
Our patent protected
text payment system's anticipated capabilities also set us apart. By creating a product that permits mobile payments without
the need to for a data plan, internet or an application, we will have the unique ability to target unbanked and underbanked individuals
primarily in developing or emerging markets. Integrating consumers that are not traditionally included in the payment space will
allow us to have a larger potential market than many of our competitors.
The features and
capabilities of products we intend to bring to market allow for agile transaction processing which supports API-driven, multi-channel
and secure products. The ability for such products to be embedded into other technologies while supporting multi-currency transactions
set our anticipated suite of products apart from established fintech companies.
Our Growth Strategy
We intend to grow
through levering our existing IP, partnering with strategic partners that have unique technology that complements the core businesses
of the company as well as through selective acquisition. From traditional merchant accounts to customizable inbound and outbound
payment solutions, we intend to modernize and enhance the payment processing and digital banking capabilities for businesses throughout
the world. Our business objective is to generate revenues based on licensing fees, synergistic product lines, processing fees,
SaaS distribution and continual advancement of our IP portfolio.
Our target market
is SMBs seeking to broaden their distribution through the addition of digital payment channels, SMBs looking to create competitive
advantage by advancing their integration and streamlining of their payment processing services and financial institutions looking
to enhance their customer's user experience through the development of innovative and user centric multi-channel, multi-currency,
digital financial products. We intend to utilize a white-label SaaS delivery model, which will allow for service fees, revenue
sharing and back-end processing fees. Further, by offering SMBs a full array of lead generation services, merchant services processing
and digital banking technologies, we will allow them to better interact with their customers and provide additional, dynamic means
of processing both inbound and outbound payments. SMBs generally lack the resources of large enterprises to invest heavily in
technology. As a result, they are more dependent on service providers, such as us, to handle critical functions including payment
acceptance and other support services and are likely to be early adopters of new services that will further increase their efficiency
and drive growth.
43
Businesses'
financial technology needs are increasingly complex. As electronic and mobile commerce continues to grow, businesses have no alternative
but to use technology to better reach their customers. We believe by delivering novel, adaptive products meet their financial
services needs it will result in rapid market penetration for our anticipated products launches.
While leveraging
new technology is vital to our growth plan, it is equally important that technology is relevant and seamlessly fits into and benefits
our end-user's everyday life. Consumers are sometimes reluctant to alter their typical routines, especially when it relates
to financial services. The anticipated launch of our text payment system and broader digital banking and payments solutions will
meet both these needs. We will offer payment acceptance technologies that do not rely on legacy payment rails while allowing the
end-user to transact frictionless and secure payments with the comfort of text messaging. Once properly developed and rolled out,
we anticipate rapid adoption.
We
seek to grow our business by pursuing the following strategies:
●
Increasing
                                         our customer base by offering unique, and compelling patent protected technology solutions;
●
Driving
                                         growth in our merchant services business through new and flexible technologies, including
                                         our secure text payment system, that will enable our customers to adapt to a rapidly
                                         changing marketplace;
●
Rolling-out
                                         our
API-driven, account-based, issuer processing
                                         solution for card, digital token, and payment transfer transactions that will enable
                                         us to target multi-currency and multi-channel digital banking and embedded B2B payment
                                         opportunities
;
●
Engaging
                                         end-users via lead generation and text marketing services to enable businesses to better
                                         communicate with their customers and integrate our full suite of products;
●
Maintaining
                                         technological leadership by continuing to innovate and improve our technology;
●
Pursuing
                                         strategic acquisitions or partnerships to complement and bolster our suite of fintech
                                         products;
●
Creating
                                         cross-selling synergies through white labeling or SaaS distribution enabling us to provide
                                         a holistic suite of products and services to merchants, banking institutions and SMEs;
●
Utilizing
                                         a scalable business model to eliminate certain barriers to rapid growth; and
●
Expanding
                                         into the telehealth sector by offering advanced remote patient monitoring technologies.
Vital to our future
success is the market penetration of our current and future products. Our market penetration strategy includes four elements:
(1) royalty-free licenses; (2) engaging close industry contacts; (3) utilizing potential market share shifting IP; and (4) illustrating
the need for our fintech products in fintech amongst our target industry segments.
At the outset,
to gain a foothold, we plan to offer royalty-free licenses for our text messaging and complimentary payment solutions in exchange
for the processing the related payments. By incentivizing potential clients with free access to advanced, patented technology,
we will give clients the ability to bolster and enhance their fintech capabilities, while creating revenue streams for our full
suite of products.
With
years of fintech experience, management believes we can leverage our industry contacts and past clients in order to gain valuable
contracts with businesses. Engaging individuals with the ability to integrate our products may prove invaluable. Further, through
our channel partnerships, we have an expansive network of potential clients to integrate our technology into their payment processing
needs.
Management
believes there are substantial opportunities in emerging and developing markets for our anticipated products. Our mobile payment
and digital banking solutions offer innovative avenues to unbanked and underbanked communities to transact and provide remittances.
Further, since internet connectivity is not required for our text payment solution, individuals with limited internet access will
still be able transact. These two factors have the ability to open our products to markets with immense growth potential.
44
Companies
are regularly attempting to identify ways to stay in contact with their customers and create new payment channels. Our products
do precisely this. When customers sign up for our secure text payment system, clients will have the ability to integrate a text
messaging waiver into the registration process. This allows for clients to have fresh, opted-in contact information which can
be paired with our text messaging services for notification, response, authentication, marketing, advertising, information queries
and reports. It is our intent to market these identifiable benefits to companies in order to illustrate the advantages of partnering
with us. Specific industries that could utilize our secure text payment system are pharmacies, collection agencies, charitable
and religious organizations, utility companies, property management companies and any business that relies upon recurring business.
Our partnership
with NEC Payments' internationally experienced and proven team of subject matter experts will enable our management to focus
resources on delivering growth using the strategies described above with full confidence that the business is being powered by
innovative technology IP running on robust, secure and scalable highly-available cloud infrastructure.
Management
believes our partnership with Silver Alert Services, LLC is the initial foothold for our expansion in the telehealth sector. Our
strategic partnership providing financial services in support of their remote patient monitoring devices has the opportunity
to create substantial revenue. However, with the emergence of new telehealth platforms and the rapid shift towards e-visits,
many of which require private payer model, we believe our payment acceptance technology, specifically our embedded
capabilities will have widespread application in the sector.
Our
Products and Services
Merchant
Services
Our
core historical business is merchant transaction services. We create revenue by processing payments for credit and debit cards
via POS (point of sale) equipment, e-commerce gateways, periodic ACH (automatic clearing house) payments and gift & loyalty
programs. We currently support over 100 merchants representing dozens of market verticals in managing their financial transactions.
Each
merchant has unique requirements for payment processing. As a result, we have a variety of processing partners to meet each merchant's
requirements. In addition to these needs, we take into consideration certain aspects of each business in choosing the optimal
processing partner including risk, volume, customer service, integration capabilities, product features and profitability.
Our processing partners
include Total Systems Services ("TSYS")/Global Payments., JetPay an NCR Payment Solutions Company, Harbortouch Payments
a Shift4 Company, Cynergy Data/Priority Payments Systems Group, Novera/WorldPay and High Risk Holdings, LLC, with each providing
products and services that meet each of our merchants' needs. Currently, our partners manage our backend payment processing
needs in addition to managing risk and compliance on our behalf. Through the implementation of our proprietary payment processing
protocols as we grow our customer base, we will manage the risk and compliance ourselves, which will increase our margins on each
transaction processed.
Using
our proprietary software, together with our partnerships, we are able to offer our merchants efficient online onboarding through
our website development and hosting services, payment integration APIs including data encryption, payment tokenization and issuing
banking authorization, and the creation of white-label, merchant-specific mobile applications. As we move forward with our secure
text payment system and other products, we intend to enter new partnership agreements to align with our plans to integrate advanced
processing capabilities, permitting the global expansion of our secure text payments.
Text
Payment System
We
are developing a comprehensive and broad mobile payment platform which, once an account is established, relies solely on SMS text
messaging. By integrating our payment processing with text messaging and a digital wallet, we intend to offer the mobile payment
industry's first and only patent protected text payment system. The integration of direct, reliable, instant, and familiar
text messaging with secure payments is how we believe we bridge the gap between fintech and mobile wireless systems.
Anticipated
features of our secure mobile payments include:
●
Utilization
    of standard SMS (Short Message Services) text messaging;
●
A payment platform
    that does not require mobile internet, a data plan or a mobile application;
●
A secure text payment
    protocol that can be used on all traditional and smart cellular phones on all major global carriers without any additions
    or modifications to the mobile user wireless plan; and
●
Simple authentication
    of the end-user.
45
Our
secure text payment system will a simple, three-step SMS text process utilizing a digital wallet, necessary to verify payee and
payor identification, account numbers and fund availability for preregistered users. Payment may be engaged by the mobile user
messaging a set of keywords to an established short code managed by us, or a merchant can contact an opted-in mobile user inquiring
whether they desire to make a payment. The registered user will authorize the amount and company in which they intend to remit
payment.
Within the text payment
platform there are three distinct services that are used. These include: (1) our patented text messaging platform, (2) a digital
wallet and (3) payment processing. Depending on the needs of the merchant, we may provide all three services or only license our
text messaging platform to a business that utilizes their own/third-party digital wallet and alternate payment processors. Through
licensing agreements, we possess powerful application programming interfaces (APIs) to allow licensees to develop their own, white-labeled
software applications. This flexible approach allows for an opportunity for greater market penetration.
Our
text payment system will be used by businesses seeking to maintain contact with customers and find new ways to receive payments.
A utility company could contact a customer via text message informing them their bill is due, then ask if they would like to pay
their bill by a few simple text messages, a church could contact their parishioners asking to contribute their weekly tithe companies
will create simplistic ways to update, inform and process transactions with brand loyalists.
Our
text payment system is still in development. Continued development including integration, testing and certification are still
needed in order to be marketable. Management believes the text payment system will be launched in third quarter of 2021.
We
believe this simple payment process has widespread application and adoption by mobile users because it utilizes a technology many
end users are comfortable with and use daily. The process is quick and user-friendly allowing businesses to simply expand their
payment receiving capabilities. Management believes no other product exists that provides verification of accounts and funds,
authentication of user identity, and the authorization of payment processing in the same fashion as our anticipated product.
The
following is a visual depiction of the text payment system:
46
Lead
Generation
The
lead generation industry has relied on thousands of "cold calls" that were rarely answered. According to the Mobile
Marketing Association, the only wireless technology that is opened 98% of the time is SMS text message. As a supplement to our
merchant services business, we offer a patent protected SMS text messaging lead generation service for advertising, marketing
and alerting our merchants' customers directly.
Using
the merchant's own opted-in mobile number database, our lead generation service can regularly offer the merchants'
customers with the latest in the merchant's products and services, promotions, discounts, appointment scheduling as well
as payment reminders, which can then be purchased via our text payments solution should merchants choose to utilize this service.
Soliciting
consumers requires added incentive and, as a solution, we plan on creating a text rewards program; by partnering with national
brands, we intend to offer cash awards redeemable where the merchants' customers shop, eat and are entertained. Management
believes this will increase our merchant customers' revenues and increase our customer base.
Our lead generation
platform utilizes our patented text messaging capabilities to deliver text marketing services. Further, merchants and business
will able to utilize data captured through the transaction which may be offered back to the merchant to leverage marketing trends.
By
offering merchants our lead generation services, it provides an opportunity for cross-selling our text payment system. For example,
a pharmacy using our services to inform their consumer that their prescription is filled can then send a follow-up text asking
if the consumer is interested in paying for the prescription via our text payment. Management believes this cross-selling synergy
has the ability to increase revenues for all the services we offer.
Our
web-based advanced text messaging for marketing, advertising, information queries and alert notifications has extensive applications
across numerous industries. Our past, present, and future clients will have direct access to their end user customers offering
them targeted information and new services. Just as important, our technology is scalable, easily allowing us to meet the needs
of our growing customer base.
The
following is a visual representation of our lead generation system:
47
Our
Intellectual Property
Our
intellectual property is an important component to our business. Our strategy is to continue to build on our existing patent base
and further develop additional patents and intellectual property as we grow our business domestically and internationally. Our
management believes developing patent-based software products, integrating new technologies and creating intellectual property
will have significantly contributed to our performance.
We
have incorporated four USPTO patents into our operational, enterprise-grade text messaging platform for SMS marketing, advertising
and sales. By integrating our SMS technology with our MFA payment system, we will offer secure text payments. In addition to secure
text payments, our MFA allows users to authenticate and validate in order to access private data and complete online transactions
and inquiries. Our proprietary text messaging capabilities also allow users to send and receive a text message from a short code
and initiate two-way chat from a mobile to a computer using only text-messaging.
48
Mobile-to-Mobile
    Payment System and Method
Computer-to-Mobile
    Two-Way Chat System and Method
System
    and Method for Delivering Web Content to a Mobile Device
System
    and Method for Delivering Web Content to a Mobile Device
SMS
    chat on a computer short or long codes, chat on circuit & packet switch networks, chat on paging channels.
Receiving,
    displaying, linking web content via URL from application delivered via SMS short code to at least one mobile.
Receiving,
    displaying, linking web content via URL from application delivered via SMS short code to at least one mobile.
Embedding
    of a URL in a text message from a pop- up screen.
Expiration
    Date:
Expiration
    Date:
Expiration
    Date:
Expiration
    Date:
11-12-2029
11-14-2030
09-28-2024
02-26-2027
Patent
Number 8,369,828 is at the core of our Secure Text Payment System. The patent enables a mobile user to initiate a request for
payment to a payee via SMS text message. Patent Number 8,315,184 utilizes short and/or long codes to send and receive text messages
from an application to a mobile device. Patent Number 8,572,166 embeds a URL in a text message sent from an application to a mobile
device. These patents comprise the components of our Secure Text Payment System. Patent Number 8,073,895 provides us another capability
of delivering web content to a mobile device.
We
currently have one additional patent pending. We anticipate seeking additional patents, including derivative patents, as we continue
to innovate to better meet our customer's needs. In addition to incorporating our intellectual property into our offerings,
we will license all or some of our technology to third parties to increase our revenue and speed market acceptance of our products
and services.
Our
Employees
As
of the date of this prospectus, we have 9 full-time employees. In addition to our employees, we utilize various consultants and
contractors for other services on an as-needed basis.
Our
Properties
Our
headquarters is located at 5876 Owens Avenue, Suite 100, Carlsbad, Ca 92008, consisting of approximately 3000 square feet of office
space. Our lease on this facility expires in February 2025. On January 22, 2020, we also entered a purchase option agreement for
the property in which we currently reside. We anticipate that following the expiration of the lease, we will be able to lease
or purchase additional or alternative space at commercially reasonable terms.
Legal
Proceedings
In November 2017,
two shareholders of AppTech, one who previously filed a 2014 lawsuit in the State of Washington, which was dismissed, filed another
lawsuit against us in the State of California, claiming the same accusations as in previously dismissed lawsuit. The lawsuit has
been transferred to the United States District Court for the Southern District of California. We filed an answer, affirmative
defenses and counter claims. Management believes that the Plaintiff misrepresented and mislead us during the merger between ourselves
and Transcendent One, Inc. The court has encouraged the parties to settle. Even though the Company believes the lawsuit is without
merit and will vigorously defend, the Company has made several offers to settle. On December 19, 2019, the Company entered into
a settlement and release agreement. The Company has recorded the liability as of December 31, 2019 for the total obligation of
$240,000 to be paid out over three years beginning February 15, 2020. On January 24, 2021, the parties entered a stipulation modifying
the repayment schedule of the settlement. A payment was due February 15, 2021 which has not been paid to date.
In July of 2020,
a previous business associate filed a lawsuit in the State of California alleging a number of causes of action relating to a memorandum
of understanding ("MOU") between the parties and its associated circumstances in 2016. Service of process did not
occur until January 8, 2021. Management believes, due to explicit language in the MOU, that the agreement was non-binding. Further,
management believes the statute of limitations expired. We intend to file an answer, affirmative defenses and counter claims prior
to the February 17, 2021 deadline.
49
MANAGEMENT
The
following table sets forth certain information as of the date of this prospectus about our executive officers and members of our
Board.
Name
Age
Position
Luke D'Angelo
52
Chairman of the Board;
Chief Executive Officer;
Chief Investment Officer
Gary Wachs
65
Chief Financial Officer; Director
Virgilio Llapitan
60
President; Chief Operating Officer
Jeffrey Moriarty
36
Secretary; VP of Corporate Development; Corporate
    Counsel
Michael Gross
66
Director
Christopher Williams
70
Director
Mengyin H. Liang 'Roz Huang'
53
Director
William Huff
68
Director
Michael O'Neal
65
Director
Executive
Officers
Luke
D'Angelo
has been the Chairman of the Board since 2013 and Chief Executive Officer since December 2019. Mr. D'Angelo
served as the Company's Chief Executive Officer from 2013 to 2017 and as Chief Investment Officer since 2017. Mr. D'Angelo has
over 25 years' experience in real estate, investment banking, venture capital and commercial operations. In 2006, he founded a
merchant services company, Transcendent One, Inc. which became an Inc. 500 fastest growing company, ranked at #105. Mr. D'Angelo's
company was the first "Merchant Owned" company in the United States, offering ownership in the company to customers
based on their monthly credit card processing volumes. In 2009, Mr. D'Angelo founded TransTech One, LLC a subsidiary to Transcendent
One, Inc. that had a focus in the bill payment and technology industries.
Gary
Wachs
has served as Director since 2013 and our Chief Financial Officer since 2013. Mr. Wachs is a Certified Public Accountant
who has spent his career in high-level accounting, finance and tax. Mr. Wachs served as Managing Partner of Blake and Shaffer,
a Certified Public Accounting firm, and has been a Managing Member of Blake and Wachs CPA, LTD (formerly Blake and Shaffer) since
1997. He manages corporate accounting and taxes, is experienced in PCAOB accounting and certified audits, and a variety of other
accounting, tax, and consulting areas.
Virgilio
Llapitan
has served as our President and Chief Operating Officer since December 2020. After founding his own independent
insurance agency, Mr. Llapitan transitioned into the merchant services industry in 2004, where he helped develop and market the
original ACH Payment Processing systems for online merchants as the Chairman, COO, and Director of HIMC Corporation. Over the
course of his 15 years' experience in the industry, Mr. Llapitan also served as a Universal Banker II for Ameris Bank/Bank of
America and Director of Sales/Merchant services for Transcendent One.
50
Jeffrey
Moriarty
has served as Corporate Counsel since June of 2019, as Secretary since November 2019 and as Vice President of
Corporate Development since January of 2020. Mr. Moriarty is instrumental in instituting and maintaining the Company's corporate
and business functions with a focus on corporate growth. Throughout his legal and business career, Mr. Moriarty has an array of
interdisciplinary experience, including managing his own law firm. Mr. Moriarty graduated magna cum laude of Thomas Jefferson
School of Law and received his undergraduate degree from the University of California, Santa Barbara.
Directors
Michael
Gross
has served as a Director since 2017 and as our Chief Executive Officer from 2017 until December 2019. Starting as
a salesman, Mr. Gross eventually became the president of Jones Boys Sales Promotions Co. in 1980, at the young age of 25, and
began working directly with the owner on company expansion and new product development. In 1997, Mr. Gross purchased Jones Boys
Sales Promotions Co, now Crossfire Marketing Group, Inc., and remains the owner. In addition to his work at Crossfire Marketing
Group, Inc and with us, Mr. Gross works with several AI companies on creating a conversation synthetic agent for lead generation
as well as development for customer service to improve efficiency. With over 40 years in the industry, Mr. Gross has worked with
more than 400 U.S. and Canadian media companies, setting up strategic campaigns and alliances.
Christopher
Williams
has served as a Director since 2016. Mr. Williams is a corporate finance attorney with a 42-year background in
corporate and entertainment finance, investment property transactions and investment banking, including service on the board of
directors and advisory boards for several private equity funds and venture capital firms. He served as Outside Corporate Counsel
for several publicly traded companies and financial institutions assisting clients in raising over $500 Million in capital and
alternate forms of financing. Mr. William's prior experience also includes 20 years active duty as a Navy JAG officer, Police
Officer, Special Criminal Investigator, San Diego Superior Court Arbitrator, San Diego Superior Court Judge Pro Tem, San Diego
Superior Court Special Settlement Conference Panel Judge, State of California Special Master, Professor, Federal Magistrate -
Military Review Officer, and San Diego County Bar Arbitrator. In addition, Mr. Williams was selected to serve as Special Advisor
to the Governor of California and acted as Bond Counsel for several municipalities in California with over $2 Billion in underwriting.
Mengyin
H. Liang 'Roz Huang'
has served as a Director since 2020. Ms. Huang is the President of Dandelion Global,
LLC, CEO of Athena Music & Wellness Academy and Chairwoman of International Music & Wellness Council, an international
Non- Profit organization, Advisor to the Board of Intivahealth, Inc. and Member of Board of Directors of the Alzheimer's
Association Orange County. Ms. Huang's international business experience spans over 25 years in global investment and business
development. Her expertise includes strategic planning in areas such as sustainability, green energy, healthcare, education, licensing,
corporate governance and investor relations. Ms. Huang is a business interpreter and translator and an accomplished business journalist
and public speaker.
William
Huff
has served as a Director since 2020. Mr. Huff is a certified public accountant and brings to the Board vital expertise
in finance and operations management. He has served on the Board of Directors of numerous companies, including as Chairman. Mr.
Huff began his career with Arthur Andersen, and Co., and has served large companies as CFO, developing necessary systems in high
growth environments. Forming his own practice 35 years ago, Mr. Huff became a marketing specialist, gaining national attention
as his accounting franchise grew to top 25 in the nation in only three years. Currently, Mr. Huff is the founder and owner of
YHWH, Inc. a tax and consulting firm.
Michael
O'Neal
has served as a Director since 2020. Mr. O'Neal is an innovative, analytical, strategic CEO with extensive
B2B and B2C experience executing revenue growth and business transformations for manufacturers, retailers, and distributors of
technology-based products. Most recently, as its President Mr. O'Neal transformed Linear, a small engineering-based technology
company into Nortek Security & Control, a $500M global leader in security, smart home control, health and wellness, and access
control platforms and solutions. Prior to Linear/Nortek Security Control, Mr. O'Neal led several consumer technology development
and manufacturing companies as well as number of retailers through transformations. He is currently working with several technology
companies seeking to add new technologies and expand their market presence. He is a member of the San Diego Habitat for Humanity
Board and past member of the Board of the Consumer Technology Association. He has spoken on several security/home control industry
panels for Houlihan Lokey, Imperial Capital, and the Securing New Ground Conferences.
51
Composition
of Our Board of Directors
Our
board consists of 7 members. There are no contractual obligations regarding the election of our directors. Our nominating and
corporate governance committee and our board of directors may therefore consider a broad range of factors relating to the qualifications
and background of nominees. Our nominating and corporate governance committee's and our board of directors' priority
in selecting board members is identification of persons who will further the interests of our stockholders through their established
record of professional accomplishment, the ability to contribute positively to the collaborative culture among board members,
knowledge of our business, understanding of the competitive landscape, professional and personal experiences, and expertise relevant
to our growth strategy. Our directors hold office until their successors have been elected and qualified or until the earlier
of their resignation or removal.
Director
Independence
We
intend to apply to list our common stock on The Nasdaq Capital Market. Under the Nasdaq listing rules, independent directors must
comprise a majority of a listed company's board of directors within twelve months from the date of listing. In addition,
the Nasdaq listing rules require that, subject to specified exceptions, each member of a listed company's audit, compensation
and nominating and governance committees be independent within twelve months from the date of listing. Audit committee members
must also satisfy additional independence criteria, including those set forth in Rule 10A-3 under the Securities Exchange
Act of 1934, as amended, or the Exchange Act, and compensation committee members must also satisfy the independence criteria set
forth in Rule 10C-1 under the Exchange Act. Under Nasdaq listing rules, a director will only qualify as an "independent
director" if, in the opinion of that company's board of directors, that person does not have a relationship that would
interfere with the exercise of independent judgment in carrying out the responsibilities of a director. In order to be considered
independent for purposes of Rule 10A-3 under the Exchange Act, a member of an audit committee of a listed company may
not, other than in his or her capacity as a member of the audit committee, the board of directors or any other board committee:
(1) accept, directly or indirectly, any consulting, advisory or other compensatory fee from the listed company or any of
its subsidiaries, other than compensation for board service; or (2) be an affiliated person of the listed company or any
of its subsidiaries. In order to be considered independent for purposes of Rule 10C-1, the board of directors must
consider, for each member of a compensation committee of a listed company, all factors specifically relevant to determining whether
a director has a relationship to such company which is material to that director's ability to be independent from management
in connection with the duties of a compensation committee member, including, but not limited to: the source of compensation of
the director, including any consulting advisory or other compensatory fee paid by such company to the director, and whether the
director is affiliated with the company or any of its subsidiaries or affiliates.
In February
2021, our board of directors undertook a review of the composition of our board of directors and its committees and the independence
of each director. Based upon information requested from and provided by each director concerning his background, employment and
affiliations, including family relationships, our board of directors has determined currently all of our directors, with the exception
of Mr. D'Angelo, Mr. Wachs and Mr. Gross, qualify as an independent director for purposes of Nasdaq and SEC rules. In making
that determination, our board of directors considered the relationships that each director has with us and all other facts and
circumstances the board of directors deemed relevant in determining independence, including the potential deemed beneficial ownership
of our capital stock by each director, including non-employee directors that are affiliated with certain of our major
stockholders. Upon the completion of this offering, we expect that the composition and functioning of our board of directors and
each of our committees will comply with all applicable requirements of Nasdaq and the rules and regulations of the SEC.
We
intend to adopt a policy, subject to and effective upon the effectiveness of the registration statement of which this prospectus
forms a part, that outlines a process for our securityholders to send communications to the board of directors.
52
Staggered
Board
In
accordance with the terms of our amended and restated articles of domestication and our amended and restated bylaws amended and
restated certificate of incorporation and amended and restated bylaws, our board of directors will be divided into two staggered
classes of directors and each will be assigned to one of the two classes. At each annual meeting of the stockholders, a class
of directors are elected for a two-year term to succeed the directors of the same class whose terms are then expiring. The terms
of the directors expire upon the election and qualification of successor directors at the annual meeting of stockholders to be
held during the years 2021 for Class I directors and 2022 for Class II directors.
●
Our
                                         Class I directors are Ms. Huang, Mr. Huff and Mr. O'Neal; and
●
Our
                                         Class II directors are Mr. D'Angelo, Mr. Gross, Mr. Wachs, and Mr. Williams.
Our
amended and restated articles of domestication and amended and restated bylaws provide that the number of our directors shall
be fixed from time to time by a resolution of the majority of our board of directors.
The
division of our board of directors into two classes with staggered two-year terms may delay or prevent stockholder efforts to
effect a change of our management or a change in control. We expect that additional directorships resulting from an increase in
the number of directors, if any, will be distributed among the two classes so that, as nearly as possible, each class shall consist
of one half of the board of directors.
Committees
of Our Board of Directors
Our board of directors
has established an audit committee, a compensation committee, and a nominating and corporate governance committee, each of which
will operate pursuant to a charter adopted by our board of directors on October 13, 2020, October 13, 2020, and March 17, 2020,
respectively. Upon the effectiveness of the registration statement of which this prospectus is a part, the composition and functioning
of all of our committees will comply with all applicable requirements of the Sarbanes-Oxley Act of 2002, Nasdaq and SEC rules
and regulations.
Following the consummation
of this offering, the full text of our audit committee charter, compensation committee charter, and nominating and corporate governance
charter will be posted on the investor relations portion of our website at www.apptechcorp.com. We do not incorporate the
information contained on, or accessible through, our corporate website into this prospectus, and you should not consider it a
part of this prospectus.
Audit
Committee
William
Huff, Michael O'Neal and Mengyin H. Liang 'Roz Huang' serve on the audit committee, which is be chaired by William
Huff. The audit committee's responsibilities include:
●
appointing,
                                         approving the compensation of, and assessing the independence of our independent registered
                                         public accounting firm;
●
pre-approving auditing
                                         and permissible non-audit services, and the terms of such services, to be provided
                                         by our independent registered public accounting firm;
●
reviewing
                                         the overall audit plan with our independent registered public accounting firm and members
                                         of management responsible for preparing our consolidated financial statements;
●
reviewing
                                         and discussing with management and our independent registered public accounting firm
                                         our annual and quarterly financial statements and related disclosures as well as critical
                                         accounting policies and practices used by us;
●
coordinating
                                         the oversight and reviewing the adequacy of our internal control over financial reporting;
●
establishing
                                         policies and procedures for the receipt and retention of accounting-related complaints
                                         and concerns;
●
recommending
                                         based upon the audit committee's review and discussions with management and our
                                         independent registered public accounting firm whether our audited financial statements
                                         shall be included in our Annual Report on Form 10-K;
●
monitoring
                                         the integrity of our consolidated financial statements and our compliance with legal
                                         and regulatory requirements as they relate to our consolidated financial statements and
                                         accounting matters;
●
preparing
                                         the audit committee report required by SEC rules to be included in our annual proxy statement;
●
reviewing
                                         all related person transactions for potential conflict of interest situations and approving
                                         all such transactions; and
●
reviewing
                                         quarterly earnings releases.
53
All
services, other than
de minimis
non-audit services, to be provided to us by our independent registered public
accounting firm must be approved in advance by our audit committee.
All
members of our audit committee will meet the requirements for financial literacy under the applicable rules and regulations of
the SEC and the Nasdaq listing rules. Our board of directors has determined that William Huff qualifies as an "audit
committee financial expert" within the meaning of applicable SEC regulations. In making this determination, our board of
directors considered the nature and scope of experience that William Huff throughout his career as a Certified Public Account.
Our board of directors has determined that all of the directors that are members of our audit committee satisfy the relevant independence
requirements for service on the audit committee set forth in the rules of the SEC and the Nasdaq listing rules. Both our independent
registered public accounting firm and management will periodically meet privately with our audit committee.
Compensation
Committee
Michael
O'Neal, William Huff and Mengyin H. Liang 'Roz Huang' serve on the compensation committee, which is chaired
by Michael O'Neal. The compensation committee's responsibilities include:
●
annually
                                         reviewing and recommending to the board of directors the corporate goals and objectives
                                         relevant to the compensation of our Chief Executive Officer;
●
evaluating
                                         the performance of our Chief Executive Officer in light of such corporate goals and objectives
                                         and based on such evaluation (i) recommending to the board of directors the cash
                                         compensation of our Chief Executive Officer and (ii) reviewing and approving grants
                                         and awards to our Chief Executive Officer under equity-based plans;
●
reviewing
                                         and approving the cash compensation of our other executive officers;
●
reviewing
                                         and establishing our overall management compensation, philosophy and policy;
●
overseeing
                                         and administering our compensation and similar plans;
●
evaluating
                                         and assessing potential and current compensation advisors in accordance with the independence
                                         standards identified in the applicable Nasdaq rules;
●
reviewing
                                         and approving our policies and procedures for the grant of equity-based awards;
●
reviewing
                                         and recommending to the board of directors the compensation of our directors;
●
preparing
                                         our compensation committee report if and when required by SEC rules;
●
reviewing
                                         and discussing annually with management our "Compensation Discussion and Analysis,"
                                         if and when required, to be included in our annual proxy statement; and
●
reviewing
                                         and approving the retention or termination of any consulting firm or outside advisor
                                         to assist in the evaluation of compensation matters.
Our
board of directors has determined that each member of the compensation committee is "independent" as defined in the
applicable Nasdaq rules. Each member of our compensation committee will be a non-employee director, as defined in Rule 16b-3 promulgated
under the Exchange Act, and an outside director, as defined pursuant to Section 162(m) of the Internal Revenue Code of 1986,
as amended.
54
Nominating
and Corporate Governance Committee
Mr.
Williams, Mr. D'Angelo and Mr. Wachs serve on the nominating and corporate governance committee, which is chaired
by Mr. Williams. The nominating and corporate governance committee's responsibilities include:
●
developing
                                         and recommending to the board of directors criteria for board and committee membership;
●
establishing
                                         procedures for identifying and evaluating board of director candidates, including nominees
                                         recommended by stockholders;
●
reviewing
                                         the composition of the board of directors to ensure that it is composed of members containing
                                         the appropriate skills and expertise to advise us;
●
identifying
                                         individuals qualified to become members of the board of directors;
●
recommending
                                         to the board of directors the persons to be nominated for election as directors and to
                                         each of the board's committees;
●
developing
                                         and recommending to the board of directors a code of business conduct and ethics and
                                         a set of corporate governance guidelines; and
●
overseeing
                                         the evaluation of our board of directors and management.
Our
board of directors may from time to time establish other committees.
Compensation
Committee Interlocks and Insider Participation
We first maintained
a compensation committee October 13, 2020. None of the members of our compensation committee is, or has at any time during the
prior three years been, one of our officers or employees. None of our executive officers currently serves, or in the past fiscal
year has served, as a member of the board of directors or compensation committee of any entity that has one or more executive
officers serving on our board of directors or compensation committee.
Corporate
Governance
We
have adopted a written code of business ethics and conduct (the "Code of Business Conduct") that applies to all of
our directors, officers and employees, including our Chief Executive Officer and Chief Financial Officer. The objective of the
Code of Conduct is to provide guidelines for maintaining our integrity, reputation, honesty, objectivity and impartiality. The
Code of Conduct addresses conflicts of interest, confidentiality, fair dealing with stockholders, competitors and employees, insider
trading, compliance with laws and reporting any illegal or unethical behavior. As part of the Code of Conduct, any person subject
to the Code of Conduct is required to avoid or fully disclose interests or relationships that are harmful or detrimental to our
best interests or that may give rise to real, potential or the appearance of conflicts of interest. Our Board will have ultimate
responsibility for the stewardship of the Code of Conduct, and it will monitor compliance through our Corporate Governance and
Nominating Committee. Directors, officers and employees will be required to annually certify that they have not violated the Code
of Conduct. Our Code of Business Conduct and Ethics reflects the foregoing principles. The full text of our Code of Business Conduct
and Ethics is published on our website at https://www.apptechcorp.com/investor-relations/.
We
intend to satisfy the disclosure requirement under Item 5.05 of Form 8-K relating to amendments to or waivers from any provision
of the Code of Business Conduct and Ethics applicable to our Chief Executive Officer and Chief Financial Officer by posting such
information on our website https://www.apptechcorp.com.
55
EXECUTIVE
COMPENSATION
The following discussion
relates to the compensation of our named executive officers for years ended December 31, 2020 and 2019, consisting of Luke D'Angelo,
our Chairman, Chief Executive Officer and Chief Investment Officer, Gary Wachs, our Chief Financial Officer, and our two
other most highly compensated executive officers as of December 31, 2020, Virgilio Llapitan, our President and Chief Operating
Officer, and Jeffrey Moriarty, our Corporate Secretary, Corporate Counsel and Vice President of Corporate Development.
Fiscal
Year 2020 and 2019 Summary Compensation Table
Name
    and Principal Position
Year
Salary
    ($)
Bonus
    ($)
Stock
    Awards ($)
Option
    Awards ($)
Non-Equity Incentive Plan
        Compensation
($)
All
    Other Compensation ($)
Total
    ($)
Luke
        D'Angelo
Chairman of the Board; Chief Executive Officer;
and Chief Investment Officer
2020
-
-
-
-
-
-
-
2019
-
-
-
-
-
-
-
Gary Wachs
Chief Financial Officer and
Director
2020
-
-
-
-
-
-
-
2019
-
-
-
-
-
-
-
Virgilio Llapitan
President and Chief Operating
Officer
2020
39,250
-
686,000
-
-
-
725,250
2019
25,000
-
-
-
-
-
25,000
Jeffrey Moriarty
Corporate Secretary; Corporate
Counsel; and Vice President of
Corporate Development
2020
85,800
-
392,000
-
-
-
477,800
2019
31,949
-
-
-
-
-
31,949
Robert Sanchez
Chief Technology Officer
(1)
2020
-
-
-
-
-
-
-
2019
21,250
-
-
-
-
-
21,250
(1)
Mr. Sanchez served as our Chief Technology
    Officer until September 24, 2020 at which time he resigned from the Company.
Narrative
Explanation of Certain Aspects of the Summary Compensation Table
The
compensation paid to our named executive officers in 2019 consisted solely of a base salary to certain executives. Outside the
compensation above, and in an attempt by executives to show commitment to the Company, we have not paid any of our executive officers
in the years ended December 31, 2020 and 2019, other than for reimbursement of expenses.
56
Employment Agreements
with Our Executive Officers
In association with
this Offering, we are entering restated employment agreements with each of our named executive officers (each an "Employment
Agreement"). The Employment Agreements shall provide, for a starting base salary and a potential annual bonus, which is
subject to adjustment by the Board from time to time. It is our intent to suspend providing equity compensation, not previously
contracted for all names executive officers, for a period of one year from this Offering. Each of the Employment Agreements will
provide that the applicable named executive officer's employment with us is "at will." The named executive officers
are entitled to receive all other benefits generally available to our executive officers. The Employment Agreements may also provide
certain severance and change in control-related benefits to our named executive officers, including cash severance and vesting
acceleration upon the occurrence of certain defined events.
Outstanding
Equity Awards
The
following table sets forth information regarding equity awards held by the Named Executive Officers as of December 31, 2020:
Option Awards
Stock Awards
Name
Number of Securities Underlying Unexercised Options, Exercisable (#)
Number of Securities Underlying Unexercised Options, Not Exercisable (#)
Option
Exercise Price ($)
Option
Expiration Date
Number of Shares or Units of Stock That Have Not Vested (#)
Market Value of Shares or Units of Stock That Have Not Vested ($)
Jeffrey Moriarty
-
-
-
-
150,000
135,000
Severance
and Change in Control Benefits
No
employment agreements with our named executive officers provides severance and change in control benefits.
Benefits
upon Death or Disability
Death
of the Officer
The
employment agreement of each of our named executive officers does not provide certain benefits if his employment is terminated
on account of his death.
Disability
of the Officer
The
employment agreement of each of our named executive officers does not provide certain benefits if his employment is terminated
on account of his disability.
Other
Benefits
We
provide vacation and other paid holidays to all employees, including our executive officers, which are comparable to those provided
at peer companies. When offered, our executive officers will be eligible to participate in all of our employee benefit plans,
such as medical, dental, vision, group life, disability and accidental death and dismemberment insurance, our employee stock purchase
plan and our 401(k) plan, in each case on the same basis as other employees, subject to applicable law, should such benefits exist.
At this time, we do not provide special benefits or other perquisites to our executive officers.
Policies
Regarding Recovery of Awards
Our
Board of Directors have not adopted a policy that requires us to make retroactive adjustments to any cash or equity-based incentive
compensation paid to executive officers (or others) where the payment was predicated upon the achievement of financial results
that were subsequently the subject of a restatement. However, we may implement a clawback policy in accordance with the requirements
of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act") and the regulations
that will be issued under that act.
57
Tax
and Accounting Treatment of Compensation
Section
162(m) of the Internal Revenue Code places a limit of $1.0 million per person on the amount of compensation that we may deduct
in any one year with respect to our Chief Executive Officer and certain of our other executive officers. While the Board of Directors
considers deductibility factors when making compensation decisions, the board also looks at other considerations, such as providing
our executive officers with competitive and adequate incentives to remain with us and increase our business operations, financial
performance and prospects, as well as rewarding extraordinary contributions. No compensation to named executive officers exceeded
this threshold in 2019 or 2020.
We
account for equity compensation paid to our employees under the rules of FASB ASC Topic 718, which requires us to estimate and
record an expense for each award of equity compensation over the service period of the award. Accounting rules also require us
to record cash compensation as an expense at the time the obligation is accrued. We have not tailored our executive compensation
program to achieve particular accounting results.
Policies
on Ownership, Insider Trading, Hedging and 10b5-1 Plans
We
do not have formal stock ownership guidelines for our employees or directors, because the Board of Directors is satisfied that
stock and option holdings among our employees or directors, are sufficient at this time to provide motivation and to align this
group's interests with those of our stockholders. In addition, we believe that stock ownership guidelines are rare in fintech
companies at our stage, which means that ownership requirements would put us at a competitive disadvantage when recruiting and
retaining high-quality executives.
Our
insider trading policy, which is incorporated into our Code of Business Ethics, prohibits certain actions by our Executive Officers
relating to buying and selling our common stock. Our executive officers are authorized to enter into trading plans established
according to Section 10b5-1 of the Exchange Act with an independent broker-dealer ("broker") designated by us. These
plans may include specific instructions for the broker to exercise vested options and sell Company stock on behalf of the executive
officer at certain dates, if our stock price is above a specified level or both. Under these plans, the executive officer no longer
has control over the decision to exercise and sell the securities in the plan, unless he or she amends or terminates the trading
plan during a trading window. Plan modifications are not effective until the 31st day after adoption. The purpose of these plans
is to enable executive officers to recognize the value of their compensation and diversify their holdings of our stock during
periods in which the executive officer would be unable to sell our common stock because material information about us had not
been publicly released. As of the record date, no named executive officer had a trading plan in place.
Stockholder
Advisory Vote on Executive Compensation
Our Company did
not hold an advisory vote on executive compensation in 2019 but may take such action in the future. Both our compensation committee
and the Board intend to periodically reevaluate our executive compensation philosophy and practices in light of our performance,
needs and developments, including the outcome of future non-binding advisory votes by our stockholders.
58
DIRECTOR
COMPENSATION
Director
Compensation Table for Year Ended December 31, 2020
The
following table sets forth information regarding compensation earned by each of our directors during the fiscal year ended December
31, 2020:
Name(1)
Fees Earned or Paid in Cash
($)
Fees Earned
in
        Restricted Stock Units
(2)
Option Awards
($)(3)
Total
($) (4)
Bobby
    Bedi
-
-
-
-
Luke
    D'Angelo
-
-
-
-
Michael
    Gross
-
$
    55,500
14,049
69,550
William
    Huff
-
$
    140,800
14,049
154,850
Mengyin
    H. Liang 'Roz Huang'
-
$
    97,500
14,049
111,550
Michael
    O'Neal
-
$
    83,250
14,049
97,300
Gary
    Wachs
-
-
-
-
Christopher
    Williams
-
$
    88,800
14,049
102,850
(1)   Mr. D'Angelo, and Mr. Wachs were employed as executives during the year ended December 31, 2019.  Bobby Bedi's
    term as a director of the company ended on July 28, 2020.
(2)   The amounts reported in this column represent the aggregate grant date fair value of Restricted Stock Units in accordance
    with FASB ASC Topic 718.
(3)   The amounts reported in this column represent the aggregate grant date fair value of option awards computed in accordance
    with FASB ASC Topic 718. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing
    model.
(4)   The amounts reported in this column represent the aggregate grant date fair value of option awards computed in accordance
    with FASB ASC Topic 718. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing
    model.
Option
    Awards
Stock
    Awards
Name
Number
    of Securities Underlying Unexercised Options, Exercisable (#)
Number
    of Securities Underlying Unexercised Options, Not Exercisable (#)
Option
    Exercise Price ($)
Option
    Expiration Date
Number
    of Shares or Units of Stock That Have Not Vested (#)
Market
    Value of Shares or Units of Stock That Have Not Vested ($)
Michael Gross
6,250
18,750
0.562
7/28/2023
-
-
William Huff
6,250
18,750
0.562
7/28/2023
-
-
Mengyin H. Liang 'Roz Huang'
6,250
18,750
0.562
7/28/2023
-
-
Michael O'Neal
6,250
18,750
0.562
7/28/2023
-
-
Christopher Williams
6,250
18,750
0.562
7/28/2023
-
-
59
CERTAIN
RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
Other
than the compensation agreements and other arrangements described under "Executive Compensation" and "Director
Compensation" in this prospectus and the transactions described below, since January 1, 2018, there has not been and
there is not currently proposed, any transaction or series of similar transactions to which we were, or will be, a party in which
the amount involved exceeded, or will exceed, the lesser of (i) $120,000 or (ii) one percent of the average of our total
assets for the last two completed fiscal years, and in which any director, executive officer, holder of five percent or more of
any class of our capital stock or any member of the immediate family of, or entities affiliated with, any of the foregoing persons,
had, or will have, a direct or indirect material interest.
In 2019 and 2018,
we obtained $39,319 and $41,047 loans payable from Luke D'Angelo, net. As of December 31, 2019 and 2018, the balance of
the loans payable was $93,901 and $54,083, respectively. The loans payable are due on demand, unsecured and non-interest bearing
as there are no formal agreements.
In
2019 and 2018, we reimbursed expenses related to various marketing expenses, professional fees and other expenses advanced by
two related parties and significant shareholders through other business ventures. Based on his ownership interest in Crossfire
Marketing Group, for the years ended December 31, 2019 and 2018, the reimbursement amounts to Michael Gross were $97,800 and $30,000,
respectively. Further, based on his ownership interest in Blake & Wachs LTD, for the year ended December 31, 2019, the reimbursement
amount to Gary Wachs was $81,000.
In
2018, we obtained $1,400 loan payable from Michael Gross. As of December 31, 2019 and 2018, the balance of the loan payable was
$1,400. The loan payable is due on demand, unsecured and non-interest bearing as there are no formal agreements.
In 2017, we issued
$222,000 in convertible notes from Luke D'Angelo. The convertible notes payable are currently due on demand, incur interest
at 10% per annum and are convertible at $0.10 per share. As of December 31, 2019 and 2018. Accrued interest related to the convertible
notes was $53,988 and $31,787, respectively. We are in default of the convertible notes payable.
Through
their business interests in Crossfire Marketing Group and Blake and Wachs, Michael B, Gross and Gary Wachs helped fund operations
through notes payable in primarily 2009 and 2010. The notes payable incur interest at 10% per annum and were due on December 31,
2016. As of December 31, 2019 and 2018, the aggregate balance of the notes payable was $620,356 and accrued interest was $575,480
and $512,945, respectively. As of December 31, 2019, we were in default of convertible notes payable.
In
2008, we issued $150,000 in convertible notes from Michael B. Gross and Gary Wachs. The convertible notes payable are currently
due on demand, incur interest at 15% per annum and convertible at $0.60 per share. As of December 31,2019 and 2018, accrued interest
related to the convertible notes was $243,375 and $220,875, respectively. As of December 31, 2019, we were in default of convertible
notes payable.
Indemnification
Agreements
In
connection with this offering, we may to enter into new agreements to indemnify our directors and executive officers. These agreements
will, among other things, require us to indemnify these individuals for certain expenses (including attorneys' fees), judgments,
fines and settlement amounts reasonably incurred by such person in any action or proceeding, including any action by or in our
right, on account of any services undertaken by such person on behalf of our company or that person's status as a member
of our board of directors to the maximum extent allowed under Wyoming law.
60
Policies
for Approval of Related Party Transactions
All related persons
transactions were reviewed and approved on terms no less favorable than those that could be obtained from unaffiliated third parties.
Further. we intend to ensure that all future transactions between us and any Related Person are approved by a majority of the
members of the Board, including a majority of the independent and disinterested members of the Board, and are on terms no less
favorable to us than those that we could obtain from unaffiliated third-parties. Additionally, all such transactions shall be
reviewed and approved by the Audit Committee, which will present its determination to the Board as a whole.
In
connection with this offering, we expect to adopt a written related party transactions policy that will provide that such transactions
must be approved by our audit committee. This policy will become effective on the date on which the registration statement of
which this prospectus is part is declared effective by the SEC. Pursuant to this policy, the audit committee has the primary responsibility
for reviewing and approving or disapproving "related party transactions," which are transactions between us and related
persons in which the aggregate amount involved exceeds or may be expected to exceed the lesser of (i) $120,000 or (ii) one
percent of the average of our total assets for the last two completed fiscal years, and in which a related person has or will
have a direct or indirect material interest. For purposes of this policy, a related person will be defined as a director, executive
officer, nominee for director, or greater than 5% beneficial owner of our common stock, in each case since the beginning of the
most recently completed year, and their immediate family members.
61
PRINCIPAL
STOCKHOLDERS
The
following table sets forth certain information known to us regarding beneficial ownership of our common stock as of September
30, 2020 by:
●
each
                                         person or group of affiliated persons known by us to be the beneficial owner of more
                                         than five percent of our capital stock;
●
each
                                         of our named executive officers;
●
each
                                         of our directors; and
●
all
                                         of our executive officers and directors as a group.
The
column entitled "Percentage of Shares Beneficially Owned—Before Offering" is calculated based on shares of common
stock outstanding as of September 30, 2020, assuming the automatic conversion of all outstanding shares of our convertible preferred
stock into an aggregate of
shares of our common stock upon the completion of this offering. The column entitled "Percentage
of Shares Beneficially Owned—After Offering" is based on                shares
of our common stock to be outstanding after this offering, including the                shares
of our common stock that we are selling in this offering, but not including any additional shares issuable upon exercise of outstanding
options.
We
have determined beneficial ownership in accordance with the rules of the SEC, and the information is not necessarily indicative
of beneficial ownership for any other purpose. These rules generally attribute beneficial ownership of securities to persons who
possess sole or shared voting power or investment power with respect to those securities as well as any shares of common stock
that the person has the right to acquire within 60 days of September 30, 2020 through the exercise of stock options or other rights.
These shares are deemed to be outstanding and beneficially owned by the person holding those options for the purpose of computing
the percentage ownership of that person, but they are not treated as outstanding for the purpose of computing the percentage ownership
of any other person. Unless otherwise indicated, the persons or entities identified in this table have sole voting and investment
power with respect to all shares shown as beneficially owned by them.
Except
as otherwise noted below, the address for persons listed in the table is c/o the Company at 5876 Owens Avenue, Suite 100, Carlsbad,
California 92008.
Number
    of Shares
Percentage
of
Outstanding Shares
Beneficially Owned
Name
Beneficially
Owned
Before
    Offering
After
Offering
Directors, Director Nominees and Named
    Executive Officers
Luke
    D'Angelo
8,034,537
9.05
%
%
Gary Wachs
6,831,517
7.70
Virgilio Llapitan
1,897,500
2.14
Jeffrey Moriarty
800,000
0.90
Michael Gross
6,331,517
7.14
Christopher Williams
    (1)
1,070,000
1.21
Mengyin H. Liang
    'Roz Huang'
65,000
0.07
William Huff
80,000
0.09
Michael O'Neal
75,000
0.08
All officers and
    directors as a group (9 persons)
25,185,071
28.38
%
%
Other 5% Stockholders
Steve Cox
7,316,067
8.24
%
Robert Sanchez (1)
5,500,000
6.20
%
Mehrak Hamzeh
4,500,000
5.07
%
(1)
690,000 shares
    are owned by HUD Investments, LLC, in which Christopher Williams wife, Karen Williams, is the sole owner.
(2)
5,000,000 shares
    are owned by GlobalTel Media, Inc., in which Robert Sanchez is the controlling shareholder.
62
DESCRIPTION
OF CAPITAL STOCK
The
following descriptions are summaries of the material terms of our amended and restated certificate of incorporation and amended
and restated bylaws, which will become effective immediately prior to the closing of this offering. The descriptions of the common
stock and preferred stock give effect to changes to our capital structure that will occur upon the completion of this offering.
We refer in this section to our amended and restated certificate of incorporation as our certificate of incorporation, and we
refer to our amended and restated bylaws as our bylaws.
General
Upon
completion of this offering, our authorized capital stock will consist of             
shares of common stock, par value $ per share, and              shares
of preferred stock, par value $ per share, all of which shares of preferred stock will be undesignated.
As
of February 12, 2021, 88,724,075 shares of our common stock were outstanding and held of record by stockholders, and 14 shares
of preferred stock were outstanding.
Common
Stock
The
holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of our stockholders.
The holders of our common stock do not have any cumulative voting rights. Holders of our common stock are entitled to receive
ratably any dividends declared by our board of directors out of funds legally available for that purpose, subject to any preferential
dividend rights of any outstanding convertible preferred stock. Our common stock has no preemptive rights, conversion rights or
other subscription rights or redemption or sinking fund provisions.
In
the event of our liquidation, dissolution or winding up, holders of our common stock will be entitled to share ratably in all
assets remaining after payment of all debts and other liabilities and any liquidation preference of any outstanding convertible
preferred stock. The shares to be issued by us in this offering will be, when issued and paid for, validly issued, fully paid
and non-assessable.
Preferred
Stock
Upon
the consummation of this offering, our board of directors will have the authority, without further action by our stockholders,
to issue up to              shares of preferred stock in one or more
series and to fix the rights, preferences, privileges and restrictions thereof. These rights, preferences and privileges could
include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and
the number of shares constituting, or the designation of, such series, any or all of which may be greater than the rights of common
stock. The issuance of our preferred stock could adversely affect the voting power of holders of common stock and the likelihood
that such holders will receive dividend payments and payments upon our liquidation. In addition, the issuance of preferred stock
could have the effect of delaying, deferring or preventing a change in control of our company or other corporate action. Immediately
after consummation of this offering, no shares of preferred stock will be outstanding, and we have no present plan to issue any
shares of preferred stock.
Stock
Options
As of September 30, 2020, there were
outstanding options to purchase an aggregate of 297,500 shares of our common stock.
63
Wyoming
Combination with Interested Stockholders Statute
The
Wyoming Combination with Interested Stockholders Statute may also have an effect of delaying or making it more difficult to effect
a change in control of our company. This statute prevents an interested stockholder and a resident domestic Wyoming corporation
from entering into a combination, unless certain conditions are met. The statute defines combination to include any merger or
consolidation with an interested stockholder, or any sale, lease, exchange, mortgage, pledge, transfer or other disposition, in
one transaction or a series of transactions with an interested stockholder having:
a)
an
                                         aggregate market value equal to 5 percent or more of the aggregate market value of the
                                         assets of the corporation;
b)
an
                                         aggregate market value equal to 5 percent or more of the aggregate market value of all
                                         outstanding shares of the corporation; or
c)
representing
                                         10 percent or more of the earning power or net income of the corporation.
An
interested stockholder means the beneficial owner of 10 percent or more of the voting shares of a resident domestic corporation,
or an affiliate or associate thereof. A corporation affected by the statute may not engage in a combination within three years
after the interested stockholder acquires its shares unless the combination or purchase is approved by the board of directors
before the interested stockholder acquired such shares. If approval is not obtained, then after the expiration of the three-year
period, the business combination may be consummated with the approval of the board of directors or a majority of the voting power
held by disinterested stockholders, or if the consideration to be paid by the interested stockholder is at least equal to the
highest of:
a)
the
                                         highest price per share paid by the interested stockholder within the three years immediately
                                         preceding the date of the announcement of the combination or in the transaction in which
                                         he became an interested stockholder, whichever is higher;
b)
the
                                         market value per common share on the date of announcement of the combination or the date
                                         the interested stockholder acquired the shares, whichever is higher; or
c)
if
                                         higher for the holders of preferred stock, the highest liquidation value of the preferred
                                         stock.
Nasdaq
Capital Market Listing
We
intend to apply to list our common stock on The Nasdaq Capital Market under the trading symbol "APCX".
Transfer
Agent and Registrar
The transfer agent
and registrar for our common stock is currently Transfer Online, Inc.
64
SHARES
ELIGIBLE FOR FUTURE SALE
Prior to this offering,
shares of our common stock were quoted on the OTC Markets under the symbol "APCX." Future sales of our common stock
in the public market, or the availability of such shares for sale in the public market, could adversely affect market prices prevailing
from time to time. As described below, only a limited number of shares will be available for sale shortly after this offering
due to contractual and legal restrictions on resale. Nevertheless, sales of our common stock in the public market after such restrictions
lapse, or the perception that those sales may occur, could adversely affect the prevailing market price at such time and our ability
to raise equity capital in the future.
Based
on the number of shares outstanding as of September 30, 2020, upon the completion of this offering,                 shares
of our common stock will be outstanding, assuming no exercise of the underwriters' option to purchase additional shares
and no exercise of outstanding options. Of the outstanding shares, all of the shares sold in this offering, except that any shares
held by our affiliates, as that term is defined in Rule 144 under the Securities Act, may only be sold in compliance with
the limitations described below, and shares of our common stock are restricted shares of common stock subject to time-based
vesting terms. All remaining shares of common stock held by existing stockholders immediately prior to the completion of this
offering, will be "restricted securities" as such term is defined in Rule 144. These restricted securities were issued
and sold by us, or will be issued and sold by us, in private transactions and are eligible for public sale only if registered
under the Securities Act or if they qualify for an exemption from registration under the Securities Act, including the exemptions
provided by Rule 144 or Rule 701, summarized below.
Rule 144
In
general, a person who has beneficially owned restricted stock for at least six months would be entitled to sell their securities
provided that (i) such person is not deemed to have been one of our affiliates at the time of, or at any time during the
90 days preceding, a sale and (ii) we are subject to the Securities Exchange Act of 1934, as amended, or the Exchange Act,
periodic reporting requirements for at least 90 days before the sale. Persons who have beneficially owned restricted shares for
at least six months but who are our affiliates at the time of, or any time during the 90 days preceding, a sale, would be subject
to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of securities
that does not exceed the greater of either of the following:
●
%
                                         of the number of shares then outstanding, which will equal approximately                  shares
                                         immediately after this offering and the concurrent private placements, assuming no exercise
                                         of the underwriters' option to purchase additional shares, based on the number
                                         of shares outstanding as of September 30, 2020; or
●
the
                                         average weekly trading volume of our common stock on The Nasdaq Global Market during
                                         the four calendar weeks preceding the filing of a notice on Form 144 with respect
                                         to the sale;
provided,
in each case, that we are subject to the Exchange Act periodic reporting requirements for at least 90 days before the sale.
Such sales both by affiliates and by non-affiliates must also comply with the manner of sale, current public information
and notice provisions of Rule 144.
Upon
waiver or expiration of the [180-day] lock-up period described below, approximately                shares
of our common stock will be eligible for sale under Rule 144. We cannot estimate the number of shares of our common stock that
our existing stockholders will elect to sell under Rule 144.
Rule 701
Rule 701
under the Securities Act, as in effect on the date of this prospectus, permits resales of shares in reliance upon Rule 144
but without compliance with certain restrictions of Rule 144, including the holding period requirement. Most of our employees,
executive officers or directors who purchased shares under a written compensatory plan or contract may be entitled to rely on
the resale provisions of Rule 701, but all holders of Rule 701 shares are required to wait until 90 days after the date
of this prospectus before selling their shares.
However,
substantially all Rule 701 shares are subject to lock-up agreements as described below and under the section titled
"Underwriters" included elsewhere in this prospectus and will become eligible for sale upon the expiration of the
restrictions set forth in those agreements.
65
Lock-Up Agreements
We
and each of our directors and executive officers and our stockholders holding more than 3.0% of our outstanding common stock intend
to sign a lock-up agreement that prevents them from selling any of our common stock or any securities convertible into
or exercisable or exchangeable for common stock for a period of not less than 180 days from the date of this prospectus without
the prior written consent of the representatives, subject to certain exceptions. See the section entitled "Underwriters"
appearing elsewhere in this prospectus for more information.
Equity
Incentive Plans
We
intend to file one or more registration statements on Form S-8 under the Securities Act to register our shares
issued or reserved for issuance under our equity incentive plans. The first such registration statement is expected to be filed
soon after the date of this prospectus and will automatically become effective upon filing with the SEC. Accordingly, shares registered
under such registration statement will be available for sale in the open market, unless such shares are subject to vesting restrictions
with us or the lock-up restrictions described above.
66
MATERIAL
U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS
The
following is a summary of the material U.S. federal income tax considerations relating to the purchase, ownership and disposition
of our Common Stock purchased in this offering, which we refer to collectively as our securities, but is for general information
purposes only and does not purport to be a complete analysis of all the potential tax considerations. This summary is based upon
the provisions of the Internal Revenue Code of 1986, as amended (the "Code"), final, temporary and proposed Treasury
regulations promulgated thereunder, administrative rulings and pronouncements and judicial decisions, all in effect as of the
date hereof. These authorities may change, possibly retroactively, resulting in U.S. federal income and estate tax consequences
different from those set forth below. There can be no assurance that the Internal Revenue Service (the "IRS") will
not challenge one or more of the tax consequences described herein, and we have not obtained, and do not intend to obtain, an
opinion of counsel or ruling from the IRS with respect to the U.S. federal income tax considerations relating to the purchase,
ownership or disposition of our securities.
This
summary does not address any alternative minimum tax considerations, any considerations regarding the Medicare tax, any considerations
regarding the tax on net investment income, or the tax considerations arising under the laws of any state, local or non-U.S. jurisdiction,
or under any non-income tax laws, including U.S. federal gift and estate tax laws, except to the limited extent set forth below.
In addition, this summary does not address all of the tax consequences that may be relevant to investors, nor does it address
tax considerations applicable to an investor's particular circumstances or to investors that may be subject to special tax
rules, including, without limitation:
●
banks, insurance companies or other financial
    institutions;
●
tax-exempt entities or governmental organizations,
    including agencies or instrumentalities thereof;
●
regulated investment companies and real estate
    investment trusts;
●
controlled foreign corporations, passive foreign
    investment companies and corporations that accumulate earnings to avoid U.S. federal income tax;
●
brokers or dealers in securities or currencies;
●
traders in securities that elect to use a mark-to-market
    method of accounting for their securities holdings;
●
persons that own, or are deemed to own, more
    than five percent of our capital stock (except to the extent specifically set forth below);
●
tax-qualified retirement plans;
●
certain former citizens or long-term residents
    of the United States;
●
partnerships or entities or arrangements classified
    as partnerships for U.S. federal income tax purposes and other pass-through entities including S corporations and trusts (and
    any investors therein);
●
persons who hold our securities as a position
    in a hedging transaction, "straddle," "conversion transaction" or other risk reduction transaction
    or integrated investment;
●
persons who do not hold our securities as a
    capital asset within the meaning of Section 1221 of the Code; or
●
persons deemed to sell our securities under
    the constructive sale provisions of the Code, or persons holding the securities as part of a "straddle," hedge,
    conversion transaction, integrated transaction or other similar transaction.
67
In
addition, if a partnership (or entity or arrangement classified as a partnership for U.S. federal income tax purposes) holds our
securities, the tax treatment of a partner generally will depend on the status of the partner and upon the activities of the partnership.
Accordingly, partnerships that hold our securities, and partners in such partnerships, should consult their tax advisors.
You
are urged to consult your own tax advisors with respect to the application of the U.S. federal income tax laws to your particular
situation, as well as any tax consequences of the purchase, ownership and disposition of our securities arising under the U.S.
federal estate or gift tax laws or under the laws of any state, local, non-U.S., or other taxing jurisdiction or under any applicable
tax treaty.
CONSEQUENCES
TO U.S. HOLDERS
The
following is a summary of the U.S. federal income tax consequences that will apply to a U.S. holder of our securities. For purposes
of this discussion, you are a U.S. holder if, for U.S. federal income tax purposes, you are a beneficial owner of our securities,
other than a partnership, that is:
●
an individual citizen or resident of the United
    States;
●
a corporation or other entity taxable as a corporation
    created or organized in the United States or under the laws of the United States, any State thereof or the District of Columbia;
●
an estate or trust whose income is subject to
    U.S. federal income tax regardless of its source; or
●
a trust (x) whose administration is subject
    to the primary supervision of a U.S. court and which has one or more "United States persons" (within the meaning
    of Section 7701(a)(30) of the Code) who have the authority to control all substantial decisions of the trust or (y) which
    has made a valid election to be treated as a "United States person."
Distributions
As
described in the section titled "Market for Our Common Stock - Dividend Policy," we have never declared or paid cash
dividends on our Common Stock and do not anticipate paying any dividends on our Common Stock in the foreseeable future. However,
if we do make distributions in cash or other property on our Common Stock, those payments will constitute dividends for U.S. tax
purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax
principles. To the extent our distributions exceed both our current and our accumulated earnings and profits, the excess will
constitute a return of capital that will first reduce your basis in our Common Stock, but not below zero, and then will be treated
as gain from the sale or other disposition of stock as described below under "—Sale, Exchange or Other Taxable Disposition
of Common Stock."
Dividend
income may be taxed to an individual U.S. holder at rates applicable to long-term capital gains, provided that a minimum holding
period and other limitations and requirements are satisfied with certain exceptions. Any dividends that we pay to a U.S. holder
that is a corporation will qualify for the dividends received deduction if the requisite holding period is satisfied, subject
to certain limitations. U.S. holders should consult their own tax advisors regarding the holding period and other requirements
that must be satisfied in order to qualify for the reduced tax rate on dividends or the dividends-received deduction.
Sale,
Exchange or Other Taxable Disposition of Common Stock
A
U.S. holder will generally recognize capital gain or loss on the sale, exchange or other taxable disposition of our Common Stock.
The amount of gain or loss will equal the difference between the amount realized on the sale and such U.S. holder's adjusted
tax basis in such Common Stock. The amount realized will include the amount of any cash and the fair market value of any other
property received in exchange for such Common Stock. A U.S. holder's adjusted tax basis in its Common Stock will generally
equal the U.S. holder's acquisition cost or purchase price, less any prior distributions treated as a return of capital.
Gain or loss will be long-term capital gain or loss if the U.S. holder has held the Common Stock for more than one year. Long-term
capital gains of non-corporate U.S. holders are generally taxed at preferential rates. The deductibility of capital losses is
subject to certain limitations.
68
Information
Reporting and Backup Withholding
In
general, information reporting requirements may apply to dividends paid to a U.S. holder and to the proceeds of the sale or other
disposition of our Common Stock, unless the U.S. holder is an exempt recipient. Backup withholding may apply to such payments
if the U.S. holder fails to provide a taxpayer identification number, a certification of exempt status or has been notified by
the IRS that it is subject to backup withholding (and such notification has not been withdrawn).
Any
amounts withheld under the backup withholding rules will be allowed as a refund or a credit against a U.S. holder's U.S.
federal income tax liability provided the required information is timely furnished to the IRS.
Unearned
Income Medicare Tax.
A
3.8% Medicare contribution tax will generally apply to all or some portion of the net investment income of a U.S. holder that
is an individual with adjusted gross income that exceeds a threshold amount ($200,000, or $250,000 if married filing jointly).
CONSEQUENCES
TO NON-U.S. HOLDERS
The
following is a summary of the U.S. federal income tax consequences that will apply to a non-U.S. holder of our securities. A "non-U.S.
holder" is a beneficial owner of our securities (other than a partnership or an entity or arrangement treated as a partnership
for U.S. federal income tax purposes) that, for U.S. federal income tax purposes, is not a U.S. holder. The term "non-U.S.
holder" includes:
●
a
                                         non-resident alien individual (other than certain former citizens and residents of the
                                         U.S. subject to U.S. tax as expatriates);
●
a
                                         foreign corporation;
●
an
                                         estate or trust that is not a U.S. holder; or
●
any
                                         other Person that is not a U.S. holder
but
generally does not include an individual who is present in the U.S. for 183 days or more or who is otherwise treated as a U.S.
resident in the taxable year. If you are such an individual, you should consult your tax advisor regarding the U.S. federal income
tax consequences of the acquisition, ownership or sale or other disposition of our securities.
Distributions
Subject
to the discussion below regarding effectively connected income, any distribution paid to a non-U.S. holder, to the extent paid
out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles) generally will
constitute a dividend for U.S. federal income tax purposes and, provided such dividends are not effectively connected with the
non-U.S. holder's conduct of a trade or business within the U.S., will be subject to U.S. withholding tax either at a rate
of 30% of the gross amount of the dividend or such lower rate as may be specified by an applicable income tax treaty. In order
to receive a reduced treaty rate, a non-U.S. holder must provide us with an IRS Form W-8BEN, IRS Form W-8BEN-E or other applicable
IRS Form W-8 properly certifying qualification for the reduced rate. These forms must be provided prior to the payment of dividends
and must be updated periodically. A non-U.S. holder eligible for a reduced rate of U.S. withholding tax pursuant to an income
tax treaty should consult with its individual tax advisor to determine if you may obtain a refund of any excess amounts withheld
by timely filing an appropriate claim for refund with the IRS. If a non-U.S. holder holds our securities through a financial institution
or other agent acting on the non-U.S. holder's behalf, the non-U.S. holder will be required to provide appropriate documentation
to the agent, which then may be required to provide certification to us or our paying agent, either directly or through other
intermediaries.
69
Dividends
received by a non-U.S. holder that are effectively connected with its conduct of a U.S. trade or business (and, if required by
an applicable income tax treaty, attributable to a permanent establishment or fixed base maintained by the non-U.S. holder in
the United States) are generally exempt from such withholding tax if the non-U.S. holder satisfies certain certification and disclosure
requirements. In order to obtain this exemption, the non-U.S. holder must provide us with an IRS Form W-8ECI or other applicable
IRS Form W-8 properly certifying such exemption. Such effectively connected dividends, although not subject to withholding tax,
are taxed at the same graduated U.S. federal income tax rates applicable to U.S. holders, net of certain deductions and credits.
In addition, dividends received by a corporate non-U.S. holder that are effectively connected with its conduct of a U.S. trade
or business may also be subject to a branch profits tax at a rate of 30% or such lower rate as may be specified by an applicable
income tax treaty. Non-U.S. holders should consult their own tax advisors regarding any applicable tax treaties that may provide
for different rules.
Any
distribution not constituting a dividend will be treated first as reducing (but not below zero) the Non-U.S. holder's adjusted
tax basis in its Common Stock and, to the extent such distribution exceeds the Non-U.S. holder's adjusted tax basis, as
gain realized from the sale or other disposition of the Common Stock, which will be treated as described under "Non-U.S.
Holders — Gain on Sale, Exchange or Other Taxable Disposition of Common Stock" below.
Gain
on Sale, Exchange or Other Taxable Disposition of Common Stock
Subject
to the discussion below regarding backup withholding and foreign accounts, a non-U.S. holder generally will not be required to
pay U.S. federal income tax on any gain realized upon the sale, exchange or other taxable disposition of our Common Stock unless:
●
the gain is effectively connected with the non-U.S.
    holder's conduct of a U.S. trade or business (and, if required by an applicable income tax treaty, the gain is attributable
    to a permanent establishment or fixed base maintained by the non-U.S. holder in the United States);
●
the non-U.S. holder is a non-resident alien
    individual who is present in the United States for a period or periods aggregating 183 days or more during the calendar year
    in which the sale or disposition occurs and certain other conditions are met; or
●
shares of our Common Stock constitute U.S. real
    property interests by reason of our status as a "United States real property holding corporation" (a USRPHC) for
    U.S. federal income tax purposes at any time within the shorter of the five-year period preceding the non-U.S. holder's
    disposition of, or the non- U.S. holder's holding period for, our Common Stock (provided that an exception does not
    apply), and, in the case where shares of our Common Stock are regularly traded on an established securities market, the Non-U.S.
    holder has owned, directly or constructively, more than 5% of our Common Stock at any time within the shorter of the five-year
    period preceding the disposition or such Non-U.S. holder's holding period for the shares of our Common Stock.
We
believe that we are not currently and will not become a USRPHC for U.S. federal income tax purposes, and the remainder of this
discussion so assumes. However, because the determination of whether we are a USRPHC depends on the fair market value of our U.S.
real property relative to the fair market value of our other business assets, there can be no assurance that we will not become
a USRPHC in the future. Even if we become a USRPHC, however, as long as our Common Stock is regularly traded on an established
securities market, such Common Stock will be treated as U.S. real property interests only if the non-U.S. holder actually or constructively
hold more than five percent of such regularly traded Common Stock at any time during the shorter of the five-year period preceding
the non-U.S. holder's disposition of, or the non-U.S. holder's holding period for, our Common Stock.
If
the non-U.S. holder is described in the first bullet above, it will be required to pay tax on the net gain derived from the sale,
exchange or other taxable disposition under regular graduated U.S. federal income tax rates, and a corporate non-U.S. holder described
in the first bullet above also may be subject to the branch profits tax at a rate of 30%, or (in each case) such lower rate as
may be specified by an applicable income tax treaty. An individual non-U.S. holder described in the second bullet above will be
required to pay a flat 30% tax (or such lower rate specified by an applicable income tax treaty) on the gain derived from the
sale, exchange or other taxable disposition, which gain may be offset by U.S. source capital losses for the year (provided the
non-U.S. holder has timely filed U.S. federal income tax returns with respect to such losses). Non-U.S. holders should consult
their own tax advisors regarding any applicable income tax or other treaties that may apply.
70
Federal
Estate Tax
Common
stock beneficially owned by an individual who is not a citizen or resident of the United States (as defined for U.S. federal estate
tax purposes) at the time of their death will generally be includable in the decedent's gross estate for U.S. federal estate
tax purposes. Such shares, therefore, may be subject to U.S. federal estate tax, unless an applicable estate tax treaty provides
otherwise.
Backup
Withholding and Information Reporting
Generally,
we must report annually to the IRS the amount of dividends paid to you, your name and address and the amount of tax withheld,
if any. A similar report will be sent to you. Pursuant to applicable income tax treaties or other agreements, the IRS may make
these reports available to tax authorities in your country of residence. A Non-U.S. holder may have to comply with certification
procedures to establish that it is not a United States person in order to avoid information reporting and backup withholding requirements.
The certification procedures required to claim a reduced rate of withholding under a treaty generally will satisfy the certification
requirements necessary to avoid the backup withholding as well for example, by properly certifying your non-U.S. status on an
IRS Form W-8BEN or IRS Form W-8BEN-E or other applicable IRS Form W-8. Notwithstanding the foregoing, backup withholding and information
reporting may apply if either we or our paying agent has actual knowledge, or reason to know, that you are a U.S. person.
Backup
withholding is not an additional tax; rather, the U.S. federal income tax liability of persons subject to backup withholding will
be reduced by the amount of tax withheld. If withholding results in an overpayment of taxes, a refund or credit may generally
be obtained from the IRS, provided that the required information is furnished to the IRS in a timely manner.
Foreign
Account Tax Compliance
The
Foreign Account Tax Compliance Act ("FATCA") generally imposes withholding tax at a rate of 30% on dividends on and
gross proceeds from the sale or other disposition of our securities paid to a "foreign financial institution" (as
specially defined under these rules), unless any such institution (1) enters into, and complies with, an agreement with the IRS
to report, on an annual basis, information with respect to interests in, and accounts maintained by, the institution that are
owned by certain U.S. persons and by certain non-U.S. entities that are wholly or partially owned by U.S. persons and to withhold
on certain payments, or (2) if required under an intergovernmental agreement between the United States and an applicable foreign
country, reports such information to its local tax authority, which will exchange such information with the U.S. authorities.
An intergovernmental agreement between the United States and an applicable foreign country may modify these requirements. Accordingly,
the entity through which our securities are held will affect the determination of whether such withholding is required. Similarly,
dividends in respect of our securities held by an investor that is a non-financial non-U.S. entity that does not qualify under
certain exceptions will generally be subject to withholding at a rate of 30%, unless such entity either (1) certifies to us or
the applicable withholding agent that such entity does not have any "substantial United States owners" or (2) provides
certain information regarding the entity's "substantial United States owners," which will in turn be provided
to the U.S. Department of Treasury. . Non-U.S. holders should consult their own tax advisors regarding the possible implications
of this legislation on their investment in our securities.
Each
prospective investor should consult its own tax advisor regarding the particular U.S. federal, state and local and non-U.S. tax
consequences of purchasing, owning and disposing of our securities, including the consequences of any proposed changes in applicable
laws.
71
UNDERWRITERS
We
have entered into an underwriting agreement, dated              , 2021, with          , who we refer to as the underwriter, with respect to the shares
of Common Stock subject to this Offering. Subject to certain conditions, we have agreed to sell to the underwriter, and the underwriter
has agreed to purchase, the number of shares of Common Stock provided below.
Underwriter
Number
    of Shares of Common Stock
Total
The
underwriter is offering the shares of Common Stock subject to its acceptance of the shares of Common Stock from us and subject
to prior sale. The underwriting agreement provides that the obligation of the underwriter to pay for and accept delivery of the
shares of Common Stock offered by this prospectus is subject to the approval of certain legal matters by their counsel and to
certain other conditions. The underwriter is obligated to take and pay for all of the shares of Common Stock if any such shares
are taken.
Over-Allotment
Option
We have granted the
underwriter an option, exercisable for [45] days from the date of this prospectus, to purchase up to an aggregate of shares of
Common Stock to cover over-allotments, if any, at the public Offering Price set forth on the cover page of this prospectus, less
the underwriting discount. The underwriter may exercise this option solely for the purpose of covering over-allotments, if any,
made in connection with the offering of the shares of Common Stock offered by this prospectus. If the underwriter exercises its
option, the underwriter will be obligated, subject to certain conditions, to purchase the number of additional shares of Common
Stock for which the option has been exercised.
Discount,
Commissions and Expenses
The
underwriter has advised us that it proposes to offer the shares of Common Stock to the public at the public Offering Price set
forth on the cover page of this prospectus and to certain dealers at that price less a concession not in excess of $          per share
of Common Stock. The underwriter may allow, and certain dealers may reallow, a discount from the concession not in excess of $         
per Unit to certain brokers and dealers. After this Offering, the public Offering Price, concession and reallowance to dealers
may be changed by the underwriter. No such change will change the amount of proceeds to be received by us as set forth on the
cover page of this prospectus. The shares of Common Stock are offered by the underwriter as stated herein, subject to receipt
and acceptance by it and subject to its right to reject any order in whole or in part. The underwriter has informed us that it
does not intend to confirm sales to any accounts over which they exercise discretionary authority.
The
following table shows the underwriting discounts payable to the underwriter by us in connection with this offering. Such amounts
are shown assuming both no exercise and full exercise of the underwriter's over-allotment option to purchase additional
shares of Common Stock.
72
Per
    Share of Common Stock
Total
    Without Exercise of Over-Allotment Option
Total
    With Exercise of Over-Allotment Option
Public
    offering price
$
$
$
Underwriting
    discount (       %)
$
$
$
We
have agreed to reimburse the representative of the underwriter for the representative's accountable expenses, including
the representative's legal fees, as well as other fees, expenses and disbursement up to a maximum amount of $        . We have
paid $ the representative as an advance to be applied towards reasonable out-of-pocket expenses, or the advances. Any portion
of the advance shall be returned back to us to the extent not actually incurred. We estimate that the total expenses payable by
us in connection with this offering, other than the underwriting discounts referred to above, will be approximately $         .
Indemnification
We
have agreed to indemnify the underwriter against certain liabilities, including liabilities under the Securities Act of 1933,
as amended, or the Securities Act, and liabilities arising from breaches of representations and warranties contained in the underwriting
agreement, or to contribute to payments that the underwriter may be required to make in respect of those liabilities.
Lock-Up
Agreements
We,
our officers, directors and certain of our stockholders have agreed to, subject to limited exceptions, for a period of days after
the Offering is completed, not to offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or
otherwise dispose of, directly or indirectly any shares of Common Stock or any securities convertible into or exchangeable for
our Common Stock either owned as of the date of the underwriting agreement or thereafter acquired without the prior written consent
of the representative of the underwriter. The representative of the underwriter may, in its sole discretion and at any time or
from time to time before the termination of the lock-up period, without notice, release all or any portion of the securities subject
to lock-up agreements.
73
Price
Stabilization, Short Positions and Penalty Bids
In
connection with the Offering the underwriter may engage in stabilizing transactions, over-allotment transactions, syndicate covering
transactions and penalty bids in accordance with Regulation M under the Exchange Act:
●
Stabilizing transactions
    permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a specified maximum.
●
Over-allotment involves
    sales by the underwriter of shares of Common Stock in excess of the number of shares of Common Stock the underwriter is obligated
    to purchase, which creates a short position. The short position may be either a covered short position or a naked short position.
    In a covered short position, the number of shares of Common Stock over-allotted by the underwriter is not greater than the
    number of shares of Common Stock that it may purchase in the over-allotment option. In a naked short position, the number
    of shares of Common Stock involved is greater than the number of shares of Common Stock in the over-allotment option. The
    underwriter may close out any covered short position by either exercising its over-allotment option or purchasing additional
    shares of Common Stock in the open market.
●
Syndicate covering
    transactions involve purchases of shares of the Common Stock in the open market after the distribution has been completed
    in order to cover syndicate short positions. In determining the source of shares to close out the short position, the underwriter
    will consider, among other things, the price of shares available for purchase in the open market as compared to the price
    at which it may purchase shares through the over-allotment option. If the underwriter sells more shares than could be covered
    by the over-allotment option, a naked short position, the position can only be closed out by buying shares in the open market.
    A naked short position is more likely to be created if the underwriter is concerned that there could be downward pressure
    on the price of the shares in the open market after pricing that could adversely affect investors who purchase in the offering.
●
Penalty bids permit
    a syndicate representative to reclaim a selling concession from a syndicate member when the Common Stock originally sold by
    the syndicate member is purchased in a stabilizing or syndicate covering transaction to cover syndicate short positions.
These
stabilizing transactions, syndicate covering transactions and penalty bids, to the extent applicable, may have the effect of raising
or maintaining the market price of our Common Stock or preventing or retarding a decline in the market price of the Common Stock.
As a result, the price of our securities may be higher than the price that might otherwise exist in the open market. Neither we
nor the underwriter make any representation or prediction as to the direction or magnitude of any effect that the transactions
described above may have on the price of our Common Stock. In addition, neither we nor the underwriter make any representations
that the underwriter will engage in these stabilizing transactions or that any transaction, once commenced, will not be discontinued
without notice.
Nasdaq
Listing
We intend to apply
to list our shares of Common Stock on The Nasdaq Capital Market under the symbol "APCX".
LEGAL
MATTERS
The
validity of the shares of common stock offered by this prospectus will be passed upon for us by Nelson Mullins Riley & Scarborough
LLP, Washington, D.C. Certain legal matters relating to this offering will be passed upon for the underwriters by             .
EXPERTS
dbbmckennon,
independent registered public accounting firm, has audited our consolidated financial statements on December 31, 2019 and
2018, and for each of the two years in the period ended December 31, 2019, as set forth in their report. We've included
our financial statements in the prospectus and elsewhere in the registration statement in reliance on dbbmckennon's report,
given on their authority as experts in accounting and auditing.
WHERE
YOU CAN FIND MORE INFORMATION
We
have filed with the SEC a registration statement on Form S-1 (File Number 333-                    )
under the Securities Act with respect to the common stock we are offering by this prospectus. This prospectus does not contain
all of the information included in the registration statement. For further information pertaining to us and our common stock,
you should refer to the registration statement and to its exhibits. Whenever we make reference in this prospectus to any of our
contracts, agreements or other documents, the references are not necessarily complete, and you should refer to the exhibits attached
to the registration statement for copies of the actual contract, agreement or other document.
We
are subject to the information and reporting requirements of the Securities Exchange Act of 1934, as amended, and, in accordance
with this law, file periodic reports, proxy statements and other information with the SEC. You can read our SEC filings, including
the registration statement, at the SEC's website at www.sec.gov. We also maintain a website at www.apptechcorp.com.
You may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished
to, the SEC. Information contained on our website is not a part of this prospectus and the inclusion of our website address in
this prospectus is an inactive textual reference only.
74
INDEX
TO FINANCIAL STATEMENTS
Page No.
Report of Independent Registered Public Accounting Firm
F-2
Consolidated Balance Sheets as of December 31, 2019 and 2018
F-3
Consolidated Statements of Operations for the years ended December 31, 2019 and 2018
F-4
Consolidated Statements of Stockholders' Deficit for the years ended December 31, 2019 and 2018
F-5
Consolidated Statements of Cash Flows for the years ended December 31, 2019 and 2018
F-6
Notes to the Consolidated Financial Statements
F-7
Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019 (unaudited)
F-19
Consolidated Statements of Operations for the three months and the nine months ended September 30, 2020 and 2019 (unaudited)
F-20
Consolidated Statements of Stockholders' Deficit for the three months and the nine months ended September 30, 2020 and 2019 (unaudited)
F-21
Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019 (unaudited)
F-22
Notes to the Unaudited Consolidated Financial Statements
F-23
F-
1
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To
the Board of Directors and
Stockholders of AppTech Corp.
Opinion
on the Financial Statements
We
have audited the accompanying consolidated balance sheets of AppTech Corp. (the "Company") as of December 31, 2019
and 2018, the related consolidated statements of operations, stockholders' deficit, and cash flows, for the years then ended,
and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements
present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results
of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in
the United States of America.
Going
Concern
The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed
in Note 3 to the financial statements, the Company has suffered recurring losses from operations and has a negative working capital,
which raises substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters
are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this
uncertainty.
Basis
for Opinion
These
financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on
the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company
Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company
in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.
We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not
for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting.
Accordingly, we express no such opinion.
Our
audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that our audits provide a reasonable basis for our opinion.
/s/
dbbmckennon
We
have served as the Company's auditor since 2014.
San
Diego, California
March
30, 2020
F-
2
APPTECH
CORP. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
DECEMBER
31, 2019 and 2018
December 31,
December 31,
2019
2018
ASSETS
Current assets
Cash
$
24,159
$
1,384
Accounts receivable
29,836
23,802
Deposit escrow
25,000
—
Security deposit
5,948
—
Total current assets
84,943
25,186
Security deposit
—
5,948
Property and equipment, net
—
65
TOTAL ASSETS
$
84,943
$
31,199
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable
$
1,707,878
$
1,557,405
Accrued liabilities
2,334,480
2,194,809
Stock repurchase liability
430,000
430,000
Loans payable related parties
93,401
54,082
Convertible notes payable
620,000
620,000
Convertible notes payable related parties,
372,000
372,000
Notes payable
1,104,081
1,140,081
Notes payable related parties
708,493
708,493
Total current liabilities
7,370,333
7,076,870
Long-term liabilities
Accounts payable
$
160,000
$
—
Total long-term liabilities
160,000
—
TOTAL LIABILITIES
$
7,530,333
$
7,076,870
Commitments and contingencies (Note 7)
Stockholders' Deficit
Series A preferred stock; $0.001 par value; 100,000 shares authorized; 14 shares issued and outstanding at December 31, 2019 and 2018
—
—
Common stock, $0.001 par value; 1,000,000,000 shares authorized; 84,153,825 and 86,797,132 and outstanding at December 31, 2019 and 2018, respectively
84,154
86,797
Additional paid-in capital
33,230,869
32,284,735
Accumulated deficit
(40,760,413
)
(39,417,203
)
Total stockholders' deficit
(7,445,390
)
(7,045,671
)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
$
84,943
$
31,199
See
accompanying notes to the consolidated financial statements.
F-
3
APPTECH
CORP. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
FOR
THE YEARS ENDED DECEMBER 31, 2019 and 2018
December 31,
December 31,
2019
2018
Revenues
$
256,138
$
253,785
Cost of revenues
101,638
108,389
Gross profit
154,500
145,396
Operating expenses:
General and administrative, including stock based compensation of $91,414 and $1,547,388, respectively
1,020,869
1,912,218
Research and development
82,057
279,685
Total operating expenses
1,102,926
2,191,903
Loss from operations
(948,426
)
(2,046,507
)
Other income (expenses)
Interest expense
(288,784
)
(464,616
)
Other expenses
(106,000
)
—
Total other income (expenses)
(394,784
)
(464,616
)
Loss before provision for income taxes
(1,343,210
)
(2,511,123
)
Provision for income taxes
—
—
Net loss
$
(1,343,210
)
$
(2,511,123
)
Basic and diluted net loss per common share
$
(0.02
)
$
(0.03
)
Weighted-average number of shares used basic and diluted per share amounts
84,473,862
87,346,661
See
accompanying notes to the consolidated financial statements.
F-
4
APPTECH
CORP. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF STOCKHOLDERS' DEFICIT
FOR
THE YEARS ENDED DECEMBER 31, 2019 and 2018
Series A Preferred
Common Stock
Additional Paid-
Accumulated
Stockholders'
Shares
Amount
Shares
Amount
in Capital
Deficit
Deficit
Balance December 31, 2017
14
$
—
86,052,038
$
86,052
$
30,552,488
$
(36,906,080
)
$
(6,267,540
)
Net loss
—
—
—
—
—
(2,511,123
)
(2,511,123
)
Imputed interest
—
—
—
—
13,800
—
13,800
Common stock issued for rent
—
—
50,000
50
25,450
25,500
Common stock issued for subscriptions
—
—
482,000
482
94,818
—
95,300
Common stock issued for merchant equity program
—
—
55,094
55
13,449
—
13,504
Common stock issued for services
—
—
1,758,000
1,758
1,545,630
—
1,547,388
Common stock cancelled from
AppTech Corp officer
—
—
(1,600,000
)
(1,600
)
1,600
—
—
Proceeds from sale of repurchase option
—
—
—
—
37,500
—
37,500
Balance December 31, 2018
14
—
86,797,132
86,797
32,284,735
(39,417,203
)
(7,045,671
)
Net loss
—
—
—
—
—
(1,343,210
)
(1,343,210
)
Imputed interest
—
—
—
—
13,800
—
13,800
Common stock issued for rent
—
—
40,000
40
18,360
18,400
Common stock issued for subscriptions
—
—
275,000
275
68,475
—
68,750
Common Stock issued for
Merchant equity program
—
—
37,193
37
14,840
—
14,877
Common stock issued for services
—
—
454,500
455
90,959
—
91,414
Common stock cancelled
—
—
(3,450,000
)
(3,450
)
3,450
—
—
Proceeds from sale of repurchase option
—
—
—
—
736,250
—
736,250
Balance December 31, 2019
14
$
—
84,153,825
$
84,154
$
33,230,869
$
(40,760,413
)
$
(7,445,390
)
See
accompanying notes to the consolidated financial statements.
F-
5
APPTECH
CORP. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
FOR
THE YEARS ENDED DECEMBER 31, 2019 and 2018
December 31,
December 31,
2019
2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(1,343,210
)
$
(2,511,123
)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock issued for services
91,414
1,547,388
Stock issued for rent
18,400
25,500
Imputed interest on notes payable
13,800
13,800
Amortization of debt discount
—
100,258
Depreciation and amortization
65
129
Changes in operating assets and liabilities:
Accounts receivable
(6,034
)
(2
)
Accounts payable
310,473
133,811
Accrued liabilities
154,548
497,438
Net cash used in operating activities
(760,544
)
(192,801
)
CASH FLOWS FROM INVESTING ACTIVITIES
Deposit escrow
(25,000
)
—
Security deposit
—
(5,948
)
Net cash used in investing activities
(25,000
)
(5,948
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from loans payable - related parties
39,319
41,047
Payments on notes payable
(36,000
)
—
Proceeds from sale of repurchase option
736,250
37,500
Proceeds from sale of common stock
68,750
95,300
Net cash provided by financing activities
808,319
173,847
Changes in cash and cash equivalents
22,775
(24,902
)
Cash and cash equivalents, beginning of period
1,384
26,286
Cash and cash equivalents, end of period
$
24,159
$
1,384
Supplemental disclosures of cash flow information:
Cash paid for interest
$
5,805
$
—
Cash paid for income taxes
$
7,057
$
—
Non cash investing and financing activities:
Common stock issued for merchant equity liability
$
14,877
$
13,504
See
accompanying notes to the consolidated financial statements.
F-
6
APPTECH
CORP. AND SUBSIDIARIES
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE
1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
AppTech
Corp. ("AppTech" or the "Company") is a Wyoming Corporation incorporated on July 2, 1998.
AppTech
Corp. is a FinTech company providing electronic payment processing technologies and merchant services. This includes credit card
processing, Automated Clearing House ("ACH") processing, gift and loyalty cards and e-commerce. The Company expanded
its core services to include global Short Messaging Service ("SMS") patented text messaging and secure mobile payments
based on Multi-factor authentication technologies. The patented two-way text chat platform enables secure SMS services including
mobile payments, notifications, authentication, marketing, information queries and reporting. Other services include digital marketing,
lead generation, mobile app development, and intellectual property rights development.
NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis
of Presentation
The
Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America ("U.S. GAAP"). Also see Note 3.
Principles
of Consolidation
The
Company's accounts include financials of the Company and its wholly owned subsidiaries, Transcendent One, Inc. and TransTech
One, LLC. All significant inter-company transactions have been eliminated in consolidation. The operations of Transcendent One,
Inc. and TransTech One, LLC are insignificant and the Company dissolved the subsidiaries on October 8, 2019.
Use
of Estimates
The
preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during
the reporting period. Significant estimates include the estimated liabilities related to various vendors in which communications
have ceased, contingent liabilities, and realization of tax deferred tax assets. Actual results could differ from those estimates.
Concentration
of Credit Risk
Cash
and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits of $250,000
per institution that pays Federal Deposit Insurance Corporation ("FDIC") insurance premiums. The Company has never
experienced any losses related to these balances.
The
accounts receivable from merchant services are paid by the financial institutions on a monthly basis. The Company currently uses
three financial institutions to service their merchants for which represented 100% of accounts receivable as of December 31, 2019
and 2018. The loss of one of these financial institutions would not have a significant impact on the Company's operations
as there are additional financial institutions available to the Company. For the years ended December 31, 2019 and 2018, the one
merchant (customer) represented approximately 39% and 35% of the total revenues, respectively. The loss of this customer would
have significant impact on the Company's operations.
Cash
and Cash Equivalents
The
Company classifies its highly liquid investments with maturities of three months or less at the date of purchase as cash equivalents.
Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designations
of each investment as of the balance sheet date for each reporting period. The Company classifies its investments as either short-term
or long-term based on each instrument's underlying contractual maturity date. Investments with maturities of less than 12
months are classified as short-term and those with maturities greater than 12 months are classified as long-term. The cost of
investments sold is based upon the specific identification method.
F-
7
Accounts
Receivable and Allowance for Doubtful Accounts
Accounts
receivable is recorded net of an allowance for doubtful accounts, if needed. The Company considers any changes to the financial
condition of its financial institutions used and any other external market factors that could impact the collectability of its
receivables in the determination of its allowance for doubtful accounts. The Company does not expect to have write-offs or adjustments
to accounts receivable which could have a material adverse effect on its consolidated financial position, results of operations
or cash flows as the portion which is deemed uncollectible is already taken into account when the revenue is recognized.
Revenue
Recognition
The
Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09,
codified as Accounting Standards Codification ("ASC) 606 Revenue from Contracts with Customers, which provides a single
comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The Company adopted ASC
606 effective January 1, 2019 using modified retrospective basis and the cumulative effect was immaterial to the consolidated
financial statements.
The
Company provides merchant processing solutions for credit cards and electronic payments. In all cases, the Company acts as an
agent between the merchant which generates the credit card and electronic payments, and the bank which processes such payments.
The Company's revenue is generated on services priced as a percentage of transaction value or a specified fee transaction,
depending on the card or transaction type. Revenue is recorded as services are performed which is typically when the bank processes
the merchant's credit card and electronic payments.
The
Company provides various Cloud services to business clients. Revenues generated from the services as agreed upon in a Cloud Service
Agreement. The revenue is recorded as the services are performed and billed in advance on a monthly basis. Revenues from these
services represent less than 5% of the Company's total revenues.
Consideration
paid to customers, such as amounts earned under our customer equity incentive program, are recorded as a reduction to revenues.
Fair
Value of Financial Instruments
ASC
820, Fair Value Measurements and Disclosures defines fair value 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 also 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.
The
standard describes three levels of inputs that may be used to measure fair value:
The
fair value hierarchy prioritizes the inputs used in valuation techniques into three levels as follows:
Level
    1
Observable
    inputs – unadjusted quoted prices in active markets for identical assets and liabilities;
Level
    2
Observable
    inputs – other than the quoted prices included in Level 1 that are observable for the asset or liability through corroboration
    with market data; and
Level
    3
Unobservable
    inputs – includes amounts derived from valuation models where one or more significant inputs are unobservable.
The
Company's financial instruments consist of cash and cash equivalents, accounts receivable, vendor deposits, accounts payable,
accrued expenses, etc. The carrying value of these assets and liabilities is representative of their fair market value, due to
the short maturity of these instruments.
Research
and Development
In
accordance with ASC 730, Research and Development ("R&D") costs are expensed when incurred. R&D costs include
costs of acquiring patents and other unproven technologies, contractor fees and other costs associated with the development of
the SMS short code texting platform, contract and other outside services. Total R&D costs for the years ended December 31,
2019 and 2018 were $82,057 and $279,685, respectively.
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8
Property
and Equipment
Property
and equipment is recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are
charged to operations as incurred. Depreciation of property and equipment is computed by the straight-line method (after taking
into account their respective estimated residual values) over the assets estimated useful life of five (5) years. Upon sale or
retirement of equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected
in the consolidated statements of operations.
Impairment
of Long-Lived Assets
Long-lived
assets are reviewed for impairment when there is evidence that events or changes in circumstances indicate that the carrying amount
of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying
amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group.
If the carrying amount of an asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized
for the amount by which the carrying amount of the asset or asset group exceeds the estimated fair value of the asset or asset
group. Long-lived assets to be disposed of by sale are reported at the lower of their carrying amounts or their estimated fair
values less costs to sell and are not depreciated. As of December 31, 2019 and 2018, there were no asset impairments.
Income
Taxes
The
Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included
in the consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the
differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the
fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the
extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable income in the fiscal 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 consolidated statement of operations in the period that includes the enactment date.
The
Company's income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue
Service and other tax authorities. In addition, the calculation of the Company's tax liabilities involves dealing with uncertainties
in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions based on a two-step
process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates
that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation
processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized
upon settlement. While the Company believes it has appropriate support for the positions taken on its tax returns, the Company
regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision for
income taxes. The Company continually assesses the likelihood and amount of potential adjustments and adjusts the income tax provision,
income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. As of December
31, 2019 and 2018, the Company does not believe any provisions are required in connection with uncertain tax positions as there
are none.
Per
Share Information
Basic
net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common
stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the
weighted average number of shares of common stock and potentially outstanding shares of common stock during the period.
As
of December 31, 2019 and 2018, the Company had potential dilutive securities related to options, warrants, Series A preferred
stock and convertible notes payable. These dilutive securities were not included within the calculation of dilutive net loss per
common share as the effects would have been anti-dilutive.
F-
9
Convertible
Debt
Convertible
debt is accounted for under the guidelines established by ASC 470-20 Conversion and Other Options. ASC 470-20 governs the calculation
of an embedded beneficial conversion, which is treated as an additional discount to the instruments where derivative accounting
does not apply. The amount of the value of additional stock and other consideration in addition to the beneficial conversion feature
may reduce the carrying value of the instrument to zero, but no further. The discounts are accreted over the term of the debt
using the straight line method due to the short terms of the notes.
The
Company accounts for modifications of its embedded beneficial conversions, in accordance with ASC 470-50 Modifications and Extinguishments.
ASC 470-50 requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature
and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in
a debt extinguishment.
Stock
Based Compensation
The
Company recognizes as compensation expense all share-based payment awards made to employees, directors, and consultants including
grants of stock options and warrants, based on estimated fair values. Fair value is generally determined based on the closing
price of the Company's common stock on the date of grant and is recognized over the service period. The Company has several
consulting agreements that have share based payment awards based on performance. These agreements typically require the Company
to issue common stock to the consultants on a monthly basis. The Company records the fair market value of the common stock issuable
at each month end when the performance is complete based upon the closing market price of the Company's common stock. The
Company has entered into board of directors agreements that have share based payment awards based on service. These agreements
require the Company to issue common stock to the directors, earned on a monthly basis, over the one year term of the agreement.
The Company records the fair market value of the common stock issuable at the end of the month when the director is appointed
to the board based upon the closing market price of the Company's common stock
New
Accounting Pronouncements
The
FASB issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date that amend the original
text of ASC. The Company believes those issued to date either (i) provide supplemental guidance, (ii) are technical corrections,
(iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company.
In
February 2016, the FASB issued ASU 2016-02, Leases (Topic 840), to increase transparency and comparability among organizations
by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements.
The amendments in this standard are effective for fiscal years beginning after December 15, 2018, including interim periods within
those fiscal years, for a public entity. Early adoption of the amendments in this standard is permitted for all entities, and
the Company must recognize and measure leases at the beginning of the earliest period presented using a modified retrospective
approach.
NOTE
3 – GOING CONCERN
As
reflected in the accompanying consolidated financial statements, during the years ended December 31, 2019 and 2018, the Company
incurred a net loss of $1,343,210 and $2,511,123 and used cash of $760,544 and $192,801 in operating activities. In addition,
the Company had negative working capital of $7,285,390 and $7,051,684 and an accumulated deficit of $40,760,413 and $39,417,203
at December 31, 2019 and 2018. These factors raise substantial doubt regarding the Company's ability to continue as a going
concern. We have evaluated the conditions or events that raise substantial doubt about the Company's ability as a going
concern within one year of issuance of the consolidated financial statements.
F-
10
While
the Company is continuing operations and generating revenues, the Company's cash position is not significant enough to support
the Company's daily operations. To fund operations and reduce the working capital deficit, we intend to raise additional
funds through public or private debt and/or equity offerings. During 2020, the Company raised $124,031 from a sale of a repurchase
option to fund operations. Management believes that the actions presently being taken to further implement its business plan and
generate revenues provide the opportunity for the Company to continue as a going concern, however, such are not guaranteed. While
the Company believes in the viability of its strategy to generate revenues and in its ability to raise additional funds, there
can be no assurances to that effect, nor can there be assurance that such funds will be at acceptable terms. As of the date of
these consolidated financial statements, the Company has not finalized a commitment for additional capital. The ability of the
Company to continue as a going concern is dependent upon our ability to further implement its business plan and generate revenues
and cash flows. The consolidated financial statements do not include any adjustments that might be necessary if the Company is
unable to continue as a going concern.
NOTE
4 – PATENTS AND PROPERTY AND EQUIPMENT
Patents
On
June 22, 2017, AppTech executed an Amendment to Asset Purchase Agreement with GlobalTel Media, Inc. In connection with the asset
purchase agreement, 5,000,000 shares of common stock were issued to GlobalTel Media, Inc. The Company valued the common stock
issuance at $1,000,000 based on the closing market price of the Company's common stock on the date in which the performance
was complete. This amendment revived the original asset purchase agreement dated December 4, 2013 to purchase the assets of GlobalTel
Media, Inc. (AppTech and GlobalTel agree that the asset purchase agreement dated September 30, 2015 is null and void), which include,
but is not limited to, all intellectual property, United States Patent Trademark Office ("USPTO") issued patents,
enterprise-grade, patent protected software and intellectual property for advanced messaging incorporating secure payments, databases,
documentation, copyrights, trademarks, registrations, and all current development work in process of USPTO application approval;
more specifically but not limited to USPTO 8,073,895 & 8,572,166 "System and Method for Delivering Web Content to a
Mobile Device", USPTO 8,315,184 "Computer to Mobile Two-Way Chat System and Method", and USPTO 8,369,828 "Mobile-to-Mobile
Payment System and Method". GlobalTel's technology focuses on SMS text-based applications, social media and mobile
payment. The USPTO assigned the patents to AppTech on July 25, 2017. AppTech, as part of the various agreements, agreed to pay
$1,600,000 which included an assumption of certain liabilities, including costs incurred to continue development of the patents,
as well as guaranteed payment of 25% of the net proceeds on revenue created by the patents up to $26,600,000. As of December 31,
2019 and 2018, amounts included in accounts payable related to the assumption of liabilities in connection with the patents were
$415,000 and $470,000, respectively. The Company has expensed the cost of the patents as research and development costs as the
future estimated cash flow expected cannot be reasonably estimated.
Property
and Equipment
Property
and equipment at December 31, 2019 and 2018 consisted of the following:
December 31, 2019
December 31, 2018
Property and equipment
$
24,254
$
24,254
Less: Accumulated depreciation
(24,254
)
(24,189
)
$
—
$
65
Property
and equipment primarily consists of computer equipment which is depreciated over five years. Depreciation expense for the years
ended December 31, 2019 and 2018 was $65 and $129, respectively.
F-
11
NOTE
5 – ACCRUED LIABILITIES
Accrued
liabilities as of December 31, 2019 and 2018 consist of the following:
December 31, 2019
December 31, 2018
Accrued interest – related parties
$
943,356
$
830,260
Accrued interest – third parties
1,215,699
1,059,595
Accrued residuals
39,064
36,509
Accrued merchant equity
91,023
105,900
Other
45,338
162,545
Total accrued liabilities
$
2,334,480
$
2,194,809
Accrued
Interest
Notes
payable and convertible notes payable incur interest at rates between 10% and 15%, per annum. The accrued interest in most cases
is currently in technical default due to the notes being past their maturity date.
Accrued
Residuals
The
Company pays commissions to independent agents which refer merchant accounts. The amounts payable to these independent agents
is based upon a percentage of the amounts processed on a monthly basis by these merchant accounts.
Accrued
Merchant Equity Liability
The
Company provided all merchants the opportunity to earn shares of the Company's common stock through their Merchant Equity
Program (the "Program"). Under the Program, the merchant earned 1% of their total Visa/MasterCard volume processed
during the first year of their contract. For example, if a merchant processes $1.0 million in credit card charges, the merchant
will receive 10,000 shares of the Company's common stock. The merchant must process with the Company for a period of three
years for the shares to vest. All merchants became fully vested when the Company ended the program effective December 31, 2015.
For
merchants in which the shares of common stock are not known as they are within the one-year period, the Company estimates on a
quarterly basis as to the estimated amount of shares based upon the expected amount to be processed by the merchant on an annual
basis. At the end of the first year, when the number of shares issuable is known, the Company makes an adjustment to the value
of the shares, if needed.
The
Company accounts for the value of the shares under the program as a sales incentive and thus the amounts in connection with the
Program are recorded as a reduction to revenues. As of December 31, 2019, the Company has an obligation to issue approximately
776,000 shares of the Company's common stock issuable under the Program. During the years ended December 31, 2019 and 2018,
the Company issued 37,193 and 55,094 shares of common stock relieving $14,877 and $13,504 in liability under the Program, respectively.
NOTE
6 – NOTES PAYABLE AND CONVERTIBLE NOTES PAYABLE
The
Company funds operations through cash flows generated from operations and the issuance of loans and notes payable. The following
is a summary of loans and notes payable outstanding as of December 31, 2019 and 2018. Related parties noted below are either members
of management, board of directors, significant shareholders or individuals in which have significant influence over the Company.
Loans
Payable – Related Parties
In
2019 and 2018, the Company obtained $39,319 and $41,047 loans payable from related parties, net. As of December 31, 2019 and 2018,
the balance of the loans payable was $93,401 and $54,082, respectively. The loans payable are due on demand, unsecured and non-interest
bearing as there are no formal agreements executed.
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12
Subordinated
Notes Payable
In
2016, the Company issued $350,000 in subordinated notes payable to third parties. The subordinated notes payable were due in 30
to 180 days and incurred interest at 10% per annum. As of December 31, 2019 and 2018, accrued interest related to the subordinated
notes was $118,545 and $83,545, respectively. The Company is currently in default of the subordinated note agreements.
Convertible
Notes Payable
In
2017, the Company received $222,000 in convertible notes payable from related parties. The convertible notes payable are unsecured,
were due in 180 days, incur interest at 10% per annum and are convertible at $0.10 per share. As of December 31, 2019 and 2018,
accrued interest related to the convertible notes was $53,988 and $31,787, respectively. On the date of the agreement, Management
calculated the beneficial conversion feature in connection with the convertible notes payable and recorded a discount of $222,000.
The Company amortized the discount over the term of the convertible notes payable of 180 days. During the years ended December
31, 2019 and 2018, the Company amortized $-0- and $100,258 to interest expense related to the discount, respectively. The Company
is currently in default on the convertible notes payable.
In
2015, the Company issued $50,000 in convertible notes payable. The convertible notes payable are unsecured, were due in nine months,
incur interest at 10% per annum and are convertible at $1.00 per share. As of December 31, 2019 and 2018, the accrued interest
related to the convertible notes was $20,833 and $15,833, respectively. The Company is currently in default on the convertible
note payable.
In
2014, the Company issued $400,000 in convertible notes payable. The convertible notes payable are unsecured, due in periods ranging
up to one year, incurring interest between 10% to 12% per annum and are convertible at prices ranging from $0.33 to $1.00 per
share. In addition, the Company issued 400,000 shares of common stock in connection with the convertible notes payable. The Company
had the obligation to repurchase the 400,000 shares of common stock at $1.00 per share within one year of the note issuance date.
As of December 31, 2019 and 2018, the Company held the obligation to repurchase the shares for $400,000. As of December 31, 2019
and 2018, the accrued interest related to the convertible notes was $186,083 and $145,083, respectively. The Company is currently
in default of the note agreements.
In
2008 and 2009, the Company issued $320,000 in convertible notes payable, of which $150,000 was from related parties. The convertible
notes payable are currently due on demand, incur interest at 15% per annum, and convertible at $0.60 per share. As of December
31, 2019 and 2018, accrued interest related to the convertible notes was $516,013 and $468,012 of which $243,375 and $220,875,
respectively, was due to related parties. The Company is currently in default of the notes payable agreements.
Notes
Payable
In
2016, the Company issued $143,000 in notes payable to third parties. The notes payable were due in ninety days or less. During
2019, the Company paid $36,000 in notes payable. The Company is currently in default of the note agreements.
In
2007 and 2008, the Company entered into notes payable with a related party for $46,000 in proceeds. The notes payable were due
on demand and incurred interest at 12% per annum. These were combined into a single note agreement in 2014. As of December 31,
2019 and 2018, the balance on the note payable was $88,136 and accrued interest related to the note payable was $49,243 and $39,921,
respectively. The Company is currently in default of the note payable agreement.
In
2007, the Company entered into note payable with a third party for $128,000 in proceeds. Under the terms of the agreement the
holder received a flat interest amount of $37,496. The Company is currently in default of the note payable agreement and the entire
amount of $37,496 has been included within accrued interest. Since the note payable did not incur interest, the Company imputed
interest at $12,800 and $12,800, respectively, which represented an interest rate of 10% per annum during the years ended December
31, 2019 and 2018.
In
2008, the Company entered into a note payable with a third party for $10,000 in total proceeds. The note payable is currently
in default and have a flat interest amount due of $21,000. As of December 31, 2019 and 2018, the Company was in default of the
note agreement and the entire amount of $21,000 has been included within accrued interest. Since the notes payable do not incur
interest, the Company imputed interest at $1,000 and $1,000, respectively, which represented an interest rate of 10% per annum
during the years ended December 31, 2019 and 2018.
F-
13
In
2008, the Company entered into notes payable with a third party for $26,000 in total proceeds. The notes payable have a flat interest
amount due of $80,000. During 2015, the Company received another $50,000 from the third party. During 2017, the Company entered
into an agreement whereby they would repay the principal and accrued interest in the amount of $145,000 by April 4, 2018 and issue
the holders 800,000 shares of common stock. The Company recorded the fair market value of the common stock issued at $336,000
based on the date of issuance as interest expense. Other than the issuance of shares of common stock, the Company did not perform
under the agreement. The Company is currently in default of the note agreement.
In
2007, the Company entered into note payable with a third party for $221,800 in proceeds. The note payable is currently in default
and incurs interest at 10% per annum. On September 30, 2013, the holder received an arbitration settlement for the principal and
accrued interest. As of December 31, 2019 and 2018, the Company was in default of the arbitration settlement. As of December 31,
2019 and 2018, accrued interest related to the note payable was $429,861 and $389,580, respectively.
In
2007, the Company entered into note payable with a significant shareholder for $58,600 in proceeds. The note payable is currently
due on demand and incurs interest at 10% per annum. As of December 31, 2019 and 2018, accrued interest related to the note payable
was $70,513 and $64,653, respectively. The Company is currently in default of the note agreement.
Two
significant shareholders funded the Company's operations through notes payable in primarily 2009 and 2010 and continue to
support operations on a limited basis. The notes payable incur interest at 10% per annum and were due on December 31, 2016. The
Company is currently in default of the note agreements. As of December 31, 2019 and 2018, the aggregate balance of the notes payable
was $620,356 and accrued interest was $575,480 and $512,945, respectively.
NOTE
7 - COMMITMENTS AND CONTINGENCIES
Operating
Lease
The
Company entered into a lease agreement for office space commencing December 1, 2015 through November 30, 2018. The lease was guaranteed
by various members of Management. The monthly rent under the lease agreement is as follows:
December
    1, 2017 November 30, 2018
$
7,072
The
Company entered into a lease agreement for office space commencing November 15, 2018. The monthly rent under the lease agreement
is as follows:
November
    15, 2018 November 14, 2019
$
5,443
November
    15, 2019 November 14, 2020
$
5,606
The
month December 15, 2018 – January 14, 2019 is a free rent month per the terms of the agreement.
Total
rent expense for the years ended December 31, 2019 and 2018 was $84,763 and $101,663, respectively.
On
November 29, 2018, the Company entered into an option to purchase its current facility under the terms and conditions of the lease
along with a $50,000 deposit. The option to purchase the facility was never executed and per the terms of the September 26, 2019
settlement and mutual release agreement the $50,000 deposit will be returned, with $25,000 returned on October 8, 2019 and the
balance of $25,000 was returned on February 18, 2020.
Per the terms of the lease agreement for office space, the lessor
executed an option to terminate the lease effective February 18, 2020.
See
Note 10 for subsequent events.
F-
14
Litigation
Shareholder
Lawsuit
In
March 2016, a significant shareholder ("Plaintiff") of the Company filed a lawsuit against the Company in the state
of California alleging breach of contract, fraud and negligent misrepresentation based on supposed oral promises in 2013 to give
Plaintiff's company shares in exchange for stocks in another company and a 2014 consulting agreement. The Company strongly
disputed all claims made in the lawsuit. On April 20, 2017, the Company filed an answer that denied each and every purported allegation
and cause of action and further denied that they caused any damage or loss. The Company reached an agreement resulting in a voluntary
dismissal of the civil case on July 5, 2017. The Plaintiff was not able to fulfill the proper documentation within the allotted
180 days and the 3,450,000 shares of AppTech Corp stock were properly cancelled in 2019.
Former
Shareholders Lawsuits
In
April 2014, a shareholder of AppTech filed a lawsuit against the Company in the State of Washington claiming breach of contract
related to the sale / transfer of unregistered shares at the time of AppTech acquisition. On August 13, 2014, the Company notified
the transfer agent and placed a 'Stop Order' on the shares. The shareholder claims that the 2.5 million shares received
are unrestricted and should be reflected as such. On August 19, 2014, the Company filed a motion to dismiss the lawsuit. The lawsuit
was dismissed on October 31, 2014.
In
November 2017, two shareholders of AppTech, one who previously filed the 2014 lawsuit in the State of Washington, filed another
lawsuit against the Company in the State of California, claiming the same accusations as the previously filed lawsuit which was
dismissed. The lawsuit has been transferred to the United States District Court for the Southern District of California. The Company
filed the defendants answer, affirmative defenses and counter claims. Management believes that the Plaintiff misrepresented and
misled AppTech during the merger. The court has encouraged the parties to settle. Even though the Company believes the lawsuit
is without merit and will vigorously defend, the Company has made several offers to settle. On December 19, 2019, the Company
entered into a settlement and release agreement. The Company has recorded the liability as of December 31, 2019 for the total
obligation of $240,000 to be paid out over three years beginning February 15, 2020. The 2019 impact is recorded in other expenses.
A stipulation for dismissal of action has been filed with the courts. The first payment of $20,000 due February 15, 2020 has been
paid timely.
Former
Board of Director Member Lawsuit
In
July 2018, a former Board of Director's member filed a lawsuit, in the United States District Court for the Southern District
of California, alleging various claims for relief. The Company reached an agreement, with no consideration paid that resulted
in a voluntary dismissal with prejudice and dismissed all claims on November 14, 2018.
Former
Landlord Lawsuit
In
September 2018, the landlord for our former office space lease filed a limited civil lawsuit against the Company in the State
of California. The Company reached an agreement that resulted in a stipulation for judgment on October 28, 2018. The stipulated
judgment was for $42,432 including attorney fees and court costs plus interest for which the Company recorded as a liability as
of December 31, 2018. The stipulated judgment was paid in full on August 16, 2019.
Patent
Acquisition Lawsuit
In
September 2018, a complaint was filed in San Diego superior court for a breach of contract arising from a written agreement for
the purchase of a judgment to which AppTech was not a party. The purchase of the judgment was part of the transaction to acquire
the patents. AppTech substantially performed under the agreement but the second agreement to extend the final payment was executed
under duress. On October 26, 2018, the Company filed an answer that denied each and every purported allegation and cause of action
and further denied that they caused any damage or loss. On December 3, 2019, the Company entered into a conditional settlement
providing the terms of the conditional settlement have been completed by October 1, 2020. The conditional settlement amount of
$150,000 is paid in monthly installments of $15,000. The installments, due the end of each month, have been paid through February
2020.
F-
15
Significant
Contract
In
January 2019, the Company entered into an agreement with a broker dealer to provide capital raising activities. Under the terms
of the agreement the broker dealer is to make a minimum of $90,000 in advisory fees. In addition, there are various other provisions
within the agreement which include a 10% placement fee, warrants to purchase common stock, a 4% transaction fee, etc.
Employee
versus Contractor Classification
The
Company compensates various individuals as consultants. Annually, these consultants are issued Form 1099s for amounts paid to
them. In addition, these consultants do not have arrangements in which specify compensation payable to them. The Company risks
potential tax and legal actions if these consultants are deemed to be employees by governmental agencies.
NOTE
8 – STOCKHOLDERS' DEFICIT
Series
A Preferred Stock
The
Company is authorized to issue 100,000 shares of $0.001 par value Series A preferred stock ("Series A"). There were
fourteen (14) shares of Series A preferred stock outstanding as of December 31, 2019 and 2018. The holders of Series A preferred
stock are entitled to one vote per share on an "as converted" basis on all matters submitted to a vote of stockholders
and are not entitled to cumulate their votes in the election of directors. The holders of Series A preferred stock are entitled
to any dividends that may be declared by the Board of Directors out of funds legally available, therefore on a pro rata basis
according to their holdings of shares of Series A preferred stock, on an as converted basis. In the event of liquidation or dissolution
of the Company, holders of Series A preferred stock are entitled to share ratably in all assets remaining after payment of liabilities
and have no liquidation preferences. Holders of Series A preferred stock have a right to convert each share of Series A into 780
shares common stock.
Common
Stock
The
Company is authorized to issue 1,000,000,000 shares of $0.001 par value common stock. There were 84,153,825 and 86,797,132, respectively,
shares of common stock outstanding as of December 31, 2019 and 2018. The holders of common stock are entitled to one vote per
share on all matters submitted to a vote of stockholders and are not entitled to cumulate their votes in the election of directors.
The holders of common stock are entitled to any dividends that may be declared by the board of directors out of funds legally
available, therefore subject to the prior rights of holders of any outstanding shares of preferred stock and any contractual restrictions
against the payment of dividends on common stock. In the event of liquidation or dissolution of the Company, holders of common
stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation preferences of any
outstanding shares of preferred stock. Holders of common stock have no preemptive or other subscription rights and no right to
convert their common stock into any other securities.
During
the years ended December 31, 2019 and 2018, the Company issued 454,500 and 1,758,000, respectively, shares of common stock to
several consultants in connection with business development and professional services. The Company valued the common stock issuances
at $91,414 and $1,547,388, respectively, based upon the closing market price of the Company's common stock on the date in
which the performance was complete. The amounts were expensed to general and administrative expenses on the accompanying consolidated
statements of operations.
During
the years ended December 31, 2019 and 2018, the Company issued 40,000 and 50,000 shares of common stock to the landlord in lieu
of rent, respectively. The Company valued the common stock issuance at $18,400 and $25,500, respectively, based upon the closing
market price of the Company's common stock on the date in which the performance was complete. The amount was expensed to
general and administrative expenses on the accompanying consolidated statements of operations.
See
Note 4 for common stock issued in connection with the acquisition of patents.
See
Note 5 for common stock issued for the merchant equity liability.
See
Note 6 for common stock issued for interest expense.
F-
16
Common
Stock Repurchase Option
On
May 1, 2018, the Company entered into a common stock repurchase option agreement to purchase 500,000 shares of common stock from
a third party at $0.10 per share. The Company assigned its rights to the repurchase option agreement to a third party in exchange
for compensation. The common stock repurchase options were exercised on May 15, 2018 and March 8, 2019 for which the Company received
$37,500 and $123,750, respectively, in proceeds from which was recorded as additional paid-in capital.
On
June 3, 2019, the Company entered into a common stock repurchase option agreement to purchase 2,000,000 shares of common stock
from the former President of the Company at $0.05 per share. The Company assigned its rights to the repurchase option agreement
to a third party in exchange for compensation. The common stock repurchase option was exercised on June 3, 2019 and December 20,
2019 for which the Company received $500,000 and $112,500 in proceeds for which was recorded as additional paid-in capital, respectively.
NOTE
9 – INCOME TAXES
The
Company's net deferred tax assets at December 31, 2019 and 2018 is approximately $2,037,000 and $1,781,000, respectively,
which primarily consists of net operating loss carry forwards and various accruals. As of December 31, 2019 and 2018, the Company
provided a 100% valuation allowance against the net deferred tax assets. During the years ended December 31, 2019 and 2018, the
valuation allowance increased by approximately $256,000 and $173,000, respectively.
At
December 31, 2017, the applicable federal rate used in calculating the deferred tax provision was 21%. The Tax Cuts and Jobs Act
reduced the federal corporate tax rate used in calculating the deferred income tax liability from 34% to 21%, as a result the
Company has adjusted its deferred income tax liabilities for this reduction. This resulted in a one-time reduction of approximately
$654,000 to the net deferred tax assets and corresponding valuation allowance for the year ended December 31, 2017.
The
Company is subject to tax in the United States ("U.S.") and files tax returns in the U.S. Federal jurisdiction and
California state jurisdiction. The Company is subject to U.S. Federal, state and local income tax examinations by tax authorities
for all periods starting in 2014. The Company currently is not under examination by any tax authorities.
NOTE
10 – SUBSEQUENT EVENTS
Management
has evaluated subsequent events pursuant to the requirements of ASC Topic 855 and has determined that no material subsequent events
exist other than those disclosed below.
Operating
Lease
The
Company entered into a lease agreement for office space commencing February 8, 2020 through January 31, 2025.
On
January 22, 2020, the Company also entered into a six-month option to purchase the facility under the terms and conditions of
the lease.
Stock
Based Compensation
On
January 26, 2020, The Company issued 175,000 shares of Common Stock to a consultant in connection with business development. The
Company valued the Common Stock at $148,750 based on the closing market price of the Company's Common Stock on the date
in which the performance was complete.
F-
17
Common
Stock Repurchase Option
On
January 23, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 300,000 shares of
common stock from a third party at $0.05 per share. The Company assigned its rights to the repurchase option agreement to a third
party in exchange for compensation. The common stock repurchase options were exercised on January 26, 2020 for which the Company
received $98,750 in proceeds for which was recorded as additional paid-in capital.
On
February 26, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 266,115 shares of
common stock from a third party at $0.05 per share. The Company assigned its rights to the repurchase option agreement to a third
party in exchange for compensation. The common stock repurchase option was exercised on February 27, 2020 for which the Company
received $25,281 in proceeds for which was recorded as additional paid-in capital.
On
March 18, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 250,000 shares of common
stock from a third party at $0.05 per share. The Company assigned its rights to the repurchase option agreement to a third party
in exchange for compensation. The common stock repurchase option was exercised on March 19, 2020 for which the Company received
$62,500 in proceeds for which was recorded as additional paid-in capital.
On
January 30, 2020, the World Health Organization declared the coronavirus outbreak a "Public Health Emergency of International
Concern" and on March 10, 2020, declared it to be a pandemic. Actions taken around the world to help mitigate the spread
of the coronavirus include restrictions on travel, and quarantines in certain areas, and forced closures for certain types of
public places and businesses. The coronavirus and actions taken to mitigate it have had and are expected to continue to have an
adverse impact on the economies and financial markets of many countries, including the geographical area in which the Company
operates. Since we derive our revenues from processing of purchases from our merchant services clients, a downturn in economic
activity, such as associated with the current coronavirus pandemic, could reduce the volume of purchases we process, and thus
our revenues. In addition, such a downturn could cause our merchant customers to cease operations permanently decreasing our payment
processing unless new customers are found. We may also face additional difficulty in raising capital during an economic downturn.
The effects of the potential impact cannot be estimated at this time.
Additionally,
it is reasonably possible that the estimates made in the financial statements have been, or will be materially and adversely impacted
in the near term as a result of these conditions.
See
Note 7 for additional subsequent events.
F-
18
APPTECH
CORP. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
SEPTEMBER
30, 2020 and DECEMBER 31, 2019
(UNAUDITED)
September 30, 2020
December 31, 2019
ASSETS
Current assets
Cash
$
46,316
$
24,159
Accounts receivable
38,227
29,836
Deposit escrow
—
25,000
Security deposit
—
5,948
Total current assets
84,543
84,943
Right of use asset
265,120
—
Security deposit
7,536
—
TOTAL ASSETS
$
357,199
$
84,943
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable
$
1,862,643
$
1,707,878
Accrued liabilities
2,552,712
2,334,480
Right of use liability
50,035
—
Stock repurchase liability
430,000
430,000
Loans payable related parties
51,401
93,401
Convertible notes payable
620,000
620,000
Convertible notes payable related parties
372,000
372,000
Notes payable
1,172,281
1,104,081
Notes payable related parties
708,493
708,493
Total current liabilities
7,819,565
7,370,333
Long-term liabilities
Accounts payable
—
160,000
Right of use liability
238,174
—
Total long-term liabilities
238,174
160,000
TOTAL LIABILITIES
8,057,739
7,530,333
Commitments and contingencies (Note 8)
Stockholders' Deficit
Series A preferred stock; $0.001 par value; 100,000 shares authorized; 14 shares issued and outstanding at September 30, 2020 and December 31, 2019
—
—
Common stock, $0.001 par value; 1,000,000,000 shares authorized; 87,821,825 and 84,153,825 and outstanding at September 30, 2020 and December 31, 2019, respectively
87,822
84,154
Additional paid-in capital
35,870,457
33,230,869
Accumulated deficit
(43,658,819
)
(40,760,413
)
Total stockholders' deficit
(7,700,540
)
(7,445,390
)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
$
357,199
$
84,943
See
accompanying notes to the consolidated financial statements.
F-
19
APPTECH
CORP. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
FOR
THE THREE MONTHS AND THE NINE MONTHS ENDED SEPTEMBER 30, 2020 and 2019
(UNAUDITED)
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
2020
2019
2020
2019
Revenues
$
105,357
$
66,532
$
241,367
$
190,411
Cost of revenues
48,759
26,548
103,721
75,099
Gross profit
56,598
39,984
137,646
115,312
Operating expenses:
General and administrative, including stock based compensation of $1,066,386, $46,000, $2,357,125 and $89,134, respectively
1,089,808
315,321
2,781,912
743,210
Research and development
2,999
33,212
49,250
62,350
Total operating expenses
1,092,807
348,533
2,831,162
805,560
Loss from operations
(1,036,209
)
(308,549
)
(2,693,516
)
(690,248
)
Other income (expenses)
Forgiveness of Debt
—
—
9,000
—
Interest expense
(71,723
)
(71,087
)
(213,890
)
(217,722
)
Total other expenses
(71,723
)
(71,087
)
(204,890
)
(217,722
)
Loss before provision for income taxes
(1,107,932
)
(379,636
)
(2,898,406
)
(907,970
)
Provision for income taxes
—
—
—
—
Net loss
$
(1,107,932
)
$
(379,636
)
$
(2,898,406
)
$
(907,970
)
Basic and diluted net loss per common share
$
(0.01
)
$
(0.00
)
$
(0.03
)
$
(0.01
)
Weighted-average number of shares used basic and diluted per share amounts
86,984,021
84,073,281
85,941,115
84,482,903
See
accompanying notes to the consolidated financial statements.
F-
20
APPTECH
CORP. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF STOCKHOLDERS' DEFICIT
FOR
THE THREE MONTHS AND THE NINE MONTHS ENDED SEPTEMBER 30, 2020 and 2019
(UNAUDITED)
Series A Preferred
Common Stock
Additional Paid-
Accumulated
Stockholders'
Shares
Amount
Shares
Amount
in Capital
Deficit
Deficit
Balance June 30, 2019
14
$
—
83,946,632
$
83,947
$
33,030,119
$
(39,945,538
)
$(6,831,472)
Net loss
—
—
—
—
—
(379,635
)
(379,635)
Imputed interest
—
—
—
—
3,450
—
3,450
Common stock issued for merchant equity program
—
—
37,193
37
14,840
—
14,877
Common stock issued for services
—
—
115,000
115
45,885
—
46,000
Proceeds from sale of repurchase option
—
—
—
—
—
—
—
Balance September 30, 2019
14
$
—
84,098,825
$
84,099
$
33,094,294
$
(40,325,173
)
$(7,146,780)
Balance December 31, 2018
14
$
—
86,797,132
$
86,797
$
32,284,735
$
(39,417,203
)
$(7,045,671)
Net loss
—
—
—
—
—
(907,970
)
(907,970)
Imputed interest
—
—
—
—
10,350
—
10,350
Common stock issued for subscriptions
—
—
275,000
275
68,475
—
68,750
Common stock issued for merchant equity program
—
—
37,193
37
14,840
—
14,877
Common stock issued for services
—
—
439,500
440
88,694
—
89,134
Common stock cancelled
—
—
(3,450,000
)
(3,450
)
3,450
—
—
Proceeds from sale of repurchase option
—
—
—
—
623,750
—
623,750
Balance September 30, 2019
14
$
—
84,098,825
$
84,099
$
33,094,294
$
(40,325,173
)
$(7,146,780)
Balance June 30, 2020
14
$
—
86,677,825
$
86,678
$
34,731,765
$
(42,550,887
)
$(7,732,444)
Net loss
—
—
—
—
—
(1,107,932
)
(1,107,932)
Imputed interest
—
—
—
—
3,450
—
3,450
Common stock issued for services
—
—
1,044,000
1,044
924,397
—
925,441
Common stock issued for services with warrant exercise
—
—
100,000
100
165,845
—
165,945
Proceeds from sale of repurchase option
—
—
—
—
45,000
—
45,000
Balance September 30, 2020
14
$
87,821,825
$
87,822
$
35,870,457
$
(43,658,819
)
$(7,700,540)
Balance December 31, 2019
14
$
—
84,153,825
$
84,154
$
33,230,869
$
(40,760,413
)
$(7,445,390)
Net loss
—
—
—
—
—
(2,898,406
)
(2,898,406)
Imputed interest
—
—
—
—
10,350
—
10,350
Common stock issued for services
—
—
3,568,000
3,568
2,212,612
—
2,216,180
Common stock issued for services with warrant exercise
—
—
100,000
100
165,845
—
165,945
Proceeds from sale of repurchase option
—
—
—
—
250,781
—
250,781
Balance September 30, 2020
14
$
—
87,821,825
$
87,822
$
35,870,457
$
(43,658,819
)
$(7,700,540)
See
accompanying notes to the consolidated financial statements.
F-
21
APPTECH
CORP. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2020 and 2019
(UNAUDITED)
September 30, 2020
September 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(2,898,406
)
$
(907,970
)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock issued for services
2,063,680
89,134
Stock issued for exercise of warrants
140,945
—
Imputed interest on notes payable
10,350
10,350
Depreciation and amortization
—
49
Changes in operating assets and liabilities:
Accounts receivable
(8,391
)
(5,406
)
Accounts payable
147,265
8,687
Accrued liabilities
218,233
211,920
Right of use asset and liability
23,089
—
Net cash used in operating activities
(303,235
)
(593,236
)
CASH FLOWS FROM INVESTING ACTIVITIES
Deposit escrow
25,000
(50,000
)
Security deposit
(1,589
)
—
Net cash provided by (used in) investing activities
23,411
(50,000
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds on loans payable - related parties
750
120,000
Payments on loans payable - related parties
(42,750
)
(41,000
)
Proceeds on note payable
68,200
—
Payments on notes payable
—
(36,000
)
Proceeds from sale of repurchase option
250,781
623,750
Proceeds from exercise of warrants
25,000
—
Proceeds from sale of common stock
—
68,750
Net cash provided by financing activities
301,981
735,500
Changes in cash and cash equivalents
22,157
92,264
Cash and cash equivalents, beginning of period
24,159
1,384
Cash and cash equivalents, end of period
$
46,316
$
93,648
Supplemental disclosures of cash flow information:
Cash paid for interest
$
—
$
1,805
Cash paid for income taxes
$
—
$
—
NON CASH INVESTING AND FINANCING ACTIVITIES
Common stock issued for conversion of accounts payable
$
152,500
$
—
Common stock issued for merchant equity liability
$
—
$
14,877
See
accompanying notes to the consolidated financial statements.
F-
22
APPTECH
CORP. AND SUBSIDIARIES
NOTES
TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE
1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
AppTech
Corp. ("AppTech" or the "Company") is a Wyoming Corporation incorporated on July 2, 1998.
AppTech
Corp. is a FinTech company providing electronic payment processing technologies and merchant services. This includes credit card
processing, Automated Clearing House ("ACH") processing, gift and loyalty cards and e-commerce. The Company expanded
its core services to include global Short Messaging Service ("SMS") patented text messaging and secure mobile payments.
The patented two-way text chat platform enables secure SMS services including mobile payments, notifications, authentication,
marketing, information queries and reporting. Other services include digital marketing, lead generation, mobile app development,
and intellectual property rights development.
NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis
of Presentation
The
Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America ("U.S. GAAP"). Also see Note 3.
Accounting
Method
The
accompanying unaudited financial statements of AppTech Corp. have been prepared in accordance with Accounting Principles Generally
Accepted in the United States of America ("GAAP") for interim financial information and in accordance with Rule 8-03
of Regulation S-X. Certain information and disclosures normally included in the annual financial statements prepared in accordance
with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments,
consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. These interim financial
statements should be read in conjunction with the audited annual financial statements of the Company as of and for the year ended
December 31, 2019. The results of operations for the three months and nine months ended September 30, 2020 are not necessarily
indicative of the results that may be expected for the full year.
Principles
of Consolidation
The
Company's accounts include financials of the Company and its wholly owned subsidiaries, Transcendent One, Inc. and TransTech
One, LLC. All significant inter-company transactions have been eliminated in consolidation. The operations of Transcendent One,
Inc. and TransTech One, LLC are insignificant and the Company dissolved the subsidiaries on October 8, 2019.
Use
of Estimates
The
preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during
the reporting period. Significant estimates include the estimated liabilities related to various vendors in which communications
have ceased, contingent liabilities, and realization of tax deferred tax assets. Actual results could differ from those estimates.
F-
23
Concentration
of Credit Risk
Cash
and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits of $250,000
per institution that pays Federal Deposit Insurance Corporation ("FDIC") insurance premiums. The Company has never
experienced any losses related to these balances.
The
accounts receivable from merchant services are paid by the financial institutions on a monthly basis. The Company currently uses
four financial institutions to service their merchants for which represented 100% of accounts receivable as of September 30, 2020
and 2019. The loss of one of these financial institutions would not have a significant impact on the Company's operations
as there are additional financial institutions available to the Company. For the nine months ended September 30, 2020 and 2019,
the one merchant (customer) represented approximately 36% and 40% of the total revenues, respectively. The loss of this customer
would have significant impact on the Company's operations.
Cash
and Cash Equivalents
The
Company classifies its highly liquid investments with maturities of three months or less at the date of purchase as cash equivalents.
Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designations
of each investment as of the balance sheet date for each reporting period. The Company classifies its investments as either short-term
or long-term based on each instrument's underlying contractual maturity date. Investments with maturities of less than 12
months are classified as short-term and those with maturities greater than 12 months are classified as long-term. The cost of
investments sold is based upon the specific identification method.
Accounts
Receivable and Allowance for Doubtful Accounts
Accounts
receivable is recorded net of an allowance for doubtful accounts, if needed. The Company considers any changes to the financial
condition of its financial institutions used and any other external market factors that could impact the collectability of its
receivables in the determination of its allowance for doubtful accounts. The Company does not expect to have write-offs or adjustments
to accounts receivable which could have a material adverse effect on its consolidated financial position, results of operations
or cash flows as the portion which is deemed uncollectible is already taken into account when the revenue is recognized.
Revenue
Recognition
The
Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09,
codified as Accounting Standards Codification ("ASC") 606 Revenue from Contracts with Customers, which provides a
single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The Company adopted
ASC 606 effective January 1, 2019 using modified retrospective basis and the cumulative effect was immaterial to the consolidated
financial statements.
The
Company provides merchant processing solutions for credit cards and electronic payments. In all cases, the Company acts as an
agent between the merchant which generates the credit card and electronic payments, and the bank which processes such payments.
The Company's revenue is generated on services priced as a percentage of transaction value or a specified fee transaction,
depending on the card or transaction type. Revenue is recorded as services are performed which is typically when the bank processes
the merchant's credit card and electronic payments.
The
Company provides various Cloud services to business clients. Revenues generated from the services as agreed upon in a Cloud Service
Agreement. The revenue is recorded as the services are performed and billed in advance on a monthly basis. Revenues from these
services represent less than 5% of the Company's total revenues.
Consideration
paid to customers, such as amounts earned under our customer equity incentive program, are recorded as a reduction to revenues.
F-
24
Fair
Value of Financial Instruments
ASC
820, Fair Value Measurements and Disclosures defines fair value 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 also 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.
The
standard describes three levels of inputs that may be used to measure fair value:
The
fair value hierarchy prioritizes the inputs used in valuation techniques into three levels as follows:
Level
    1
Observable
    inputs – unadjusted quoted prices in active markets for identical assets and liabilities;
Level
    2
Observable
    inputs – other than the quoted prices included in Level 1 that are observable for the asset or liability through corroboration
    with market data; and
Level
    3
Unobservable
    inputs – includes amounts derived from valuation models where one or more significant inputs are unobservable.
The
Company's financial instruments consist of cash and cash equivalents, accounts receivable, vendor deposits, accounts payable,
accrued expenses, etc. The carrying value of these assets and liabilities is representative of their fair market value, due to
the short maturity of these instruments.
Research
and Development
In
accordance with ASC 730, Research and Development ("R&D") costs are expensed when incurred. R&D costs include
costs of acquiring patents and other unproven technologies, contractor fees and other costs associated with the development of
the SMS short code texting platform, contract and other outside services. Total R&D costs for the nine months ended September
30, 2020 and 2019 were $49,250 and $62,350, respectively.
Property
and Equipment
Property
and equipment is recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are
charged to operations as incurred. Depreciation of property and equipment is computed by the straight-line method (after taking
into account their respective estimated residual values) over the assets estimated useful life of five (5) years. Upon sale or
retirement of equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected
in the consolidated statements of operations.
Impairment
of Long-Lived Assets
Long-lived
assets are reviewed for impairment when there is evidence that events or changes in circumstances indicate that the carrying amount
of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying
amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group.
If the carrying amount of an asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized
for the amount by which the carrying amount of the asset or asset group exceeds the estimated fair value of the asset or asset
group. Long-lived assets to be disposed of by sale are reported at the lower of their carrying amounts or their estimated fair
values less costs to sell and are not depreciated. As of September 30, 2020 and December 31, 2019, there were no asset impairments.
F-
25
Lease
Commitment
The
Company determines if an arrangement is a lease at inception. This determination generally depends on whether the arrangement
conveys to the Company the right to control the use of an explicitly or implicitly identified fixed asset for a period of time
in exchange for consideration. Control of an underlying asset is conveyed to the Company if the Company obtains the rights to
direct the use of and to obtain substantially all of the economic benefits from using the underlying asset. The Company has lease
agreements which include lease and non-lease components, which the Company has elected to account for as a single lease component
for all classes of underlying assets. Lease expense for variable lease components are recognized when the obligation is probable.
Operating
lease right of use ("ROU") assets and lease liabilities are recognized at commencement date based on the present value
of lease payments over the lease term. Operating lease payments are recognized as lease expense on a straight-line basis over
the lease term. The Company primarily leases buildings (real estate) which are classified as operating leases. ASC 842 requires
a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily
determined, its incremental borrowing rate. As an implicit interest rate is not readily determinable in the Company's leases,
the incremental borrowing rate is used based on the information available at commencement date in determining the present value
of lease payments.
The
lease term for all of the Company's leases includes the non-cancellable period of the lease plus any additional periods
covered by either a Company option to extend (or not to terminate) the lease that the Company is reasonably certain to exercise,
or an option to extend (or not to terminate) the lease controlled by the lessor. Options for lease renewals have been excluded
from the lease term (and lease liability) for the majority of the Company's leases as the reasonably certain threshold is
not met.
Lease
payments included in the measurement of the lease liability are comprised of fixed payments, variable payments that depend on
index or rate, and amounts probable to be payable under the exercise of the Company option to purchase the underlying asset if
reasonably certain.
Variable
lease payments not dependent on a rate or index associated with the Company's leases are recognized when the event, activity,
or circumstance in the lease agreement on which those payments are assessed as probable. Variable lease payments are presented
as operating expenses in the Company's statement of operations in the same line as expense arising from fixed lease payments.
As of September 30, 2020, management determined that there were no variable lease costs.
Income
Taxes
The
Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included
in the consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the
differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the
fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the
extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable income in the fiscal 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 consolidated statement of operations in the period that includes the enactment date.
The
Company's income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue
Service and other tax authorities. In addition, the calculation of the Company's tax liabilities involves dealing with uncertainties
in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions based on a two-step
process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates
that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation
processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely
of being realized upon settlement. While the Company believes it has appropriate support for the positions taken on its tax returns,
the Company regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision
for income taxes. The Company continually assesses the likelihood and amount of potential adjustments and adjusts the income tax
provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known.
As of September 30, 2020 and 2019, the Company does not believe any provisions are required in connection with uncertain tax positions
as there are none.
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Per
Share Information
Basic
net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common
stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the
weighted average number of shares of common stock and potentially outstanding shares of common stock during the period.
As
of September 30, 2020 and 2019, the Company had potential dilutive securities related to options, warrants, Series A preferred
stock and convertible notes payable. These dilutive securities were not included within the calculation of dilutive net loss per
common share as the effects would have been anti-dilutive.
Convertible
Debt
Convertible
debt is accounted for under the guidelines established by ASC 470-20 Conversion and Other Options. ASC 470-20 governs the calculation
of an embedded beneficial conversion, which is treated as an additional discount to the instruments where derivative accounting
does not apply. The amount of the value of additional stock and other consideration in addition to the beneficial conversion feature
may reduce the carrying value of the instrument to zero, but no further. The discounts are accreted over the term of the debt
using the straight line method due to the short terms of the notes.
The
Company accounts for modifications of its embedded beneficial conversions, in accordance with ASC 470-50 Modifications and Extinguishments.
ASC 470-50 requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature
and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in
a debt extinguishment.
Stock
Based Compensation
The
Company recognizes as compensation expense all share-based payment awards made to employees, directors, and consultants including
grants of stock options and warrants, based on estimated fair values. Fair value is generally determined based on the closing
price of the Company's common stock on the date of grant and is recognized over the service period. The Company has several
consulting agreements that have share based payment awards based on performance. These agreements typically require the Company
to issue common stock to the consultants on a monthly basis. The Company records the fair market value of the common stock issuable
at each month end when the performance is complete based upon the closing market price of the Company's common stock.
New
Accounting Pronouncements
The
FASB issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date that amend the original
text of ASC. The Company believes those issued to date either (i) provide supplemental guidance, (ii) are technical corrections,
(iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company.
NOTE
3 – GOING CONCERN
As
reflected in the accompanying consolidated financial statements, during the nine months ended September 30, 2020 and 2019, the
Company incurred a net loss of $2,898,406 and $907,970 and used cash of $303,235 and $593,236 in operating activities. In addition,
the Company had a working capital deficit of $7,735,022 and an accumulated deficit of $43,658,819 at September 30, 2020. These
factors raise substantial doubt regarding the Company's ability to continue as a going concern. We have evaluated the conditions
or events that raise substantial doubt about the Company's ability as a going concern within one year of issuance of the
consolidated financial statements.
While
the Company is continuing operations and generating revenues, the Company's cash position is not significant enough to support
the Company's daily operations. To fund operations and reduce the working capital deficit, we intend to raise additional
funds through public or private debt and/or equity offerings. During 2020, the Company raised $274,614 from eight sales of a repurchase
option and $25,000 from warrants exercised to fund operations. Management believes that the actions presently being taken to further
implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern, however,
such are not guaranteed. While the Company believes in the viability of its strategy to generate revenues and in its ability to
raise additional funds, there can be no assurances to that effect, nor can there be assurance that such funds will be at acceptable
terms. As of the date of these consolidated financial statements, the Company has not finalized a commitment for additional capital.
The ability of the Company to continue as a going concern is dependent upon our ability to further implement its business plan
and generate revenues and cash flows. The consolidated financial statements do not include any adjustments that might be necessary
if the Company is unable to continue as a going concern.
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Risks
and uncertainties
On
January 30, 2020, the World Health Organization declared the coronavirus outbreak a "Public Health Emergency of International
Concern" and on March 10, 2020, declared it to be a pandemic. Actions taken around the world to help mitigate the spread
of the coronavirus include restrictions on travel, and quarantines in certain areas, and forced closures for certain types of
public places and businesses. The coronavirus and actions taken to mitigate it have had and are expected to continue to have an
adverse impact on the economies and financial markets of many countries, including the geographical area in which the Company
operates. Since we derive our revenues from processing of purchases from our merchant services clients, a downturn in economic
activity, such as associated with the current coronavirus pandemic, could reduce the volume of purchases we process, and thus
our revenues. In addition, such a downturn could cause our merchant customers to cease operations permanently decreasing our payment
processing unless new customers are found. We may also face additional difficulty in raising capital during an economic downturn.
The effects of the pandemic had significant impact on revenue at the beginning of the pandemic and began to return to normal after
several months. The continuing effects of the potential impact cannot be estimate at this time.
Additionally,
it is reasonably possible that the estimates made in the financial statements have been, or will be materially and adversely impacted
in the near term as a result of these conditions.
NOTE
4 – PATENTS
Patents
On
June 22, 2017, AppTech executed an Amendment to Asset Purchase Agreement with GlobalTel Media, Inc. In connection with the asset
purchase agreement, 5,000,000 shares of common stock were issued to GlobalTel Media, Inc. The Company valued the common stock
issuance at $1,000,000 based on the closing market price of the Company's common stock on the date in which the performance
was complete. This amendment revived the original asset purchase agreement dated December 4, 2013 to purchase the assets of GlobalTel
Media, Inc. (AppTech and GlobalTel agree that the asset purchase agreement dated September 30, 2015 is null and void), which include,
but is not limited to, all intellectual property, United States Patent Trademark Office ("USPTO") issued patents,
enterprise-grade, patent protected software and intellectual property for advanced messaging incorporating secure payments, databases,
documentation, copyrights, trademarks, registrations, and all current development work in process of USPTO application approval;
more specifically but not limited to USPTO 8,073,895 & 8,572,166 "System and Method for Delivering Web Content to a
Mobile Device", USPTO 8,315,184 "Computer to Mobile Two-Way Chat System and Method", and USPTO 8,369,828 "Mobile-to-Mobile
Payment System and Method". GlobalTel's technology focuses on SMS text-based applications, social media and mobile
payment. The USPTO assigned the patents to AppTech on July 25, 2017. AppTech, as part of the various agreements, agreed to pay
$1,600,000 which included an assumption of certain liabilities, including costs incurred to continue development of the patents,
as well as guaranteed payment of 25% of the net proceeds on revenue created by the patents up to $26,600,000. As of September
30, 2020 and December 31, 2019, amounts included in accounts payable related to the assumption of liabilities in connection with
the patents were $340,500 and $415,000, respectively. The Company has expensed the cost of the patents as research and development
costs as the future estimated cash flow expected cannot be reasonably estimated.
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NOTE
5 – ACCRUED LIABILITIES
Accrued
liabilities as of September 30, 2020 and December 31, 2019 consist of the following:
September 30, 2020
December 31, 2019
Accrued interest – related parties
$
1,010,505
$
943,356
Accrued interest – third parties
1,352,090
1,215,699
Accrued residuals
55,068
39,064
Accrued merchant equity
91,023
91,023
Other
44,026
45,338
Total accrued liabilities
$
2,552,712
$
2,334,480
Accrued
Interest
Notes
payable and convertible notes payable incur interest at rates between 10% and 15%, per annum. The accrued interest in most cases
is currently in technical default due to the notes being past their maturity date.
Accrued
Residuals
The
Company pays commissions to independent agents which refer merchant accounts. The amounts payable to these independent agents
is based upon a percentage of the amounts processed on a monthly basis by these merchant accounts.
Accrued
Merchant Equity Liability
The
Company provided all merchants the opportunity to earn shares of the Company's common stock through their Merchant Equity
Program (the "Program"). Under the Program, the merchant earned 1% of their total Visa/MasterCard volume processed
during the first year of their contract. For example, if a merchant processes $1.0 million in credit card charges, the merchant
will receive 10,000 shares of the Company's common stock. The merchant must process with the Company for a period of three
years for the shares to vest. All merchants became fully vested when the Company ended the program effective December 31, 2015.
For
merchants in which the shares of common stock are not known as they are within the one-year period, the Company estimates on a
quarterly basis as to the estimated amount of shares based upon the expected amount to be processed by the merchant on an annual
basis. At the end of the first year, when the number of shares issuable is known, the Company makes an adjustment to the value
of the shares, if needed.
The
Company accounts for the value of the shares under the program as a sales incentive and thus the amounts in connection with the
Program are recorded as a reduction to revenues. As of September 30, 2020, the Company has an obligation to issue approximately
776,000 shares of the Company's common stock issuable under the Program. During the year ended December 31, 2019, the Company
issued 37,193 shares of common stock relieving $14,877 in liability under the program.
NOTE
6 – NOTES PAYABLE AND CONVERTIBLE NOTES PAYABLE
The
Company funds operations through cash flows generated from operations and the issuance of loans and notes payable. The following
is a summary of loans and notes payable outstanding as of September 30, 2020 and December 31, 2019. Related parties noted below
are either members of management, board of directors, significant shareholders or individuals in which have significant influence
over the Company.
Loans
Payable – Related Parties
During
the nine months ended September 30, 2020 and 2019, the Company obtained (paid) $(42,000) and $79,000 loans payable from related
parties, net. As of September 30, 2020 and December 31, 2019, the balance of the loans payable was $51,401 and $93,401, respectively.
The loans payable are due on demand, unsecured and non-interest bearing as there are no formal agreements executed.
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Subordinated
Notes Payable
In
2016, the Company issued $350,000 in subordinated notes payable to third parties. The subordinated notes payable were due in 30
to 180 days and incurred interest at 10% per annum. As of September 30, 2020 and December 31, 2019, accrued interest related to
the subordinated notes was $144,795 and $118,545, respectively. The Company is currently in default of the subordinated note agreements.
Convertible
Notes Payable
In
2017, the Company received $222,000 in convertible notes payable from related parties. The convertible notes payable are unsecured,
were due in 180 days, incur interest at 10% per annum and are convertible at $0.10 per share. As of September 30, 2020 and December
31, 2019, accrued interest related to the convertible notes was $70,638 and $53,988, respectively. On the date of the agreement,
Management calculated the beneficial conversion feature in connection with the convertible notes payable and recorded a discount
of $222,000. The Company amortized the discount over the term of the convertible notes payable of 180 days. The Company is currently
in default on the convertible notes payable.
In
2015, the Company issued $50,000 in convertible notes payable. The convertible notes payable are unsecured, were due in nine months,
incur interest at 10% per annum and are convertible at $1.00 per share. As of September 30, 2020 and December 31, 2019, the accrued
interest related to the convertible notes was $24,584 and $20,833, respectively. The Company is currently in default on the convertible
note payable.
In
2014, the Company issued $400,000 in convertible notes payable. The convertible notes payable are unsecured, due in periods ranging
up to one year, incurring interest between 10% to 12% per annum and are convertible at prices ranging from $0.33 to $1.00 per
share. In addition, the Company issued 400,000 shares of common stock in connection with the convertible notes payable. The Company
had the obligation to repurchase the 400,000 shares of common stock at $1.00 per share within one year of the note issuance date.
As of September 30, 2020 and December 31, 2019, the Company held the obligation to repurchase the shares for $400,000. As of September
30, 2020 and December 31, 2019, the accrued interest related to the convertible notes was $216,833 and $186,083, respectively.
The Company is currently in default of the note agreements.
In
2008 and 2009, the Company issued $320,000 in convertible notes payable, of which $150,000 was from related parties. The convertible
notes payable are currently due on demand, incur interest at 15% per annum, and convertible at $0.60 per share. As of September
30, 2020 and December 31, 2019, accrued interest related to the convertible notes was $552,013 and $516,013 of which $260,250
and $243,375, respectively, was due to related parties. The Company is currently in default of the notes payable agreements.
Notes
Payable
In
2020, the Company entered into a note payable with U.S. Small Business Administration for $68,200 in proceeds. The notes payable
incurred a $100 fee upon issuance and incurs interest at 3.75% per annum. All payments of principle and interest are deferred
for twelve months with the first $333 payment due July 1, 2021. As of September 30, 2020 the balance of the note payable was $68,300
and accrued interest was $640.
In
2016, the Company issued $143,000 in notes payable to third parties. The notes payable were due in ninety days or less. During
2019, the Company paid $36,000 in notes payable. The Company is currently in default of the note agreements.
In
2007 and 2008, the Company entered into notes payable with a related party for $46,000 in proceeds. The notes payable were due
on demand and incurred interest at 12% per annum. These were combined into a single note agreement in 2014. As of September 30,
2020 and December 31, 2019, the balance on the note payable was $88,136 and accrued interest related to the note payable was $57,235
and $49,243, respectively. The Company is currently in default of the note payable agreement.
In
2007, the Company entered into note payable with a third party for $128,000 in proceeds. Under the terms of the agreement the
holder received a flat interest amount of $37,496. The Company is currently in default of the note payable agreement and the entire
amount of $37,496 has been included within accrued interest. Since the note payable did not incur interest, the Company imputed
interest at $9,600 and $9,600, respectively, which represented an interest rate of 10% per annum during the nine months ended
September 30, 2020 and 2019.
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In
2008, the Company entered into a note payable with a third party for $10,000 in total proceeds. The note payable is currently
in default and has a flat interest amount due of $21,000. As of September 30, 2020 and December 31, 2019, the Company was in default
of the note agreement and the entire amount of $21,000 has been included within accrued interest. Since the notes payable do not
incur interest, the Company imputed interest at $750 and $750, respectively, which represented an interest rate of 10% per annum
during the nine months ended September 30, 2020 and 2019.
In
2008, the Company entered into notes payable with a third party for $26,000 in total proceeds. The notes payable have a flat interest
amount due of $80,000. During 2015, the Company received another $50,000 from the third party. During 2017, the Company entered
into an agreement whereby they would repay the principal and accrued interest in the amount of $145,000 by April 4, 2018 and issue
the holders 800,000 shares of common stock. The Company recorded the fair market value of the common stock issued at $336,000
based on the date of issuance as interest expense. Other than the issuance of shares of common stock, the Company did not perform
under the agreement. The Company is currently in default of the note agreement.
In
2007, the Company entered into note payable with a third party for $221,800 in proceeds. The note payable is currently in default
and incurs interest at 10% per annum. On September 30, 2013, the holder received an arbitration settlement for the principal and
accrued interest. As of September 30, 2020 and December 31, 2019, the Company was in default of the arbitration settlement. As
of September 30, 2020 and December 31, 2019, accrued interest related to the note payable was $460,072 and $429,861, respectively.
In
2007, the Company entered into note payable with a significant shareholder for $58,600 in proceeds. The note payable is currently
due on demand and incurs interest at 10% per annum. As of September 30, 2020 and December 31, 2019, accrued interest related to
the note payable was $74,908 and $70,513, respectively. The Company is currently in default of the note agreement.
Two
significant shareholders funded the Company's operations through notes payable in primarily 2009 and 2010 and continue to
support operations on a limited basis. The notes payable incur interest at 10% per annum and were due on December 31, 2016. The
Company is currently in default of the note agreements. As of September 30, 2020 and December 31, 2019, the aggregate balance
of the notes payable was $620,355 and $591,114 accrued interest was $622,382 and $575,480, respectively.
NOTE
7 – RIGHT OF USE ASSET
Lease
Agreement
In
January 2020, the Company entered into a lease agreement commencing February 8, 2020 for its current facility which expires in
2025. The term of the lease is for five years. The Company also entered into a six month option to purchase its current facility
under terms and conditions of the lease. At inception of the lease, the Company recorded a right of use asset and liability. The
Company used an effective borrowing rate of 12% within the calculation. The following are the expected lease payments as of September
30, 2020, including the total amount of imputed interest related:
Years
ended December 31, :
2020
$
20,089
2021
82,561
2022
85,039
2023
87,590
2024
90,217
2025
7,536
$
373,032
Less: Imputed interest
(84,823
)
Total
$
288,209
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NOTE
8 - COMMITMENTS AND CONTIGENCIES
Litigation
Shareholder
Lawsuit
In
March 2016, a significant shareholder ("Plaintiff") of the Company filed a lawsuit against the Company in the state
of California alleging breach of contract, fraud and negligent misrepresentation based on supposed oral promises in 2013 to give
Plaintiff's company shares in exchange for stocks in another company and a 2014 consulting agreement. The Company strongly
disputed all claims made in the lawsuit. On April 20, 2017, the Company filed an answer that denied each and every purported allegation
and cause of action and further denied that they caused any damage or loss. The Company reached an agreement resulting in a voluntary
dismissal of the civil case on July 5, 2017. The Plaintiff was not able to fulfill the proper documentation within the allotted
180 days and the 3,450,000 shares of AppTech Corp stock were properly cancelled in 2019.
Former
Shareholders Lawsuits
In
April 2014, a shareholder of AppTech filed a lawsuit against the Company in the State of Washington claiming breach of contract
related to the sale / transfer of unregistered shares at the time of AppTech acquisition. On August 13, 2014, the Company notified
the transfer agent and placed a 'Stop Order' on the shares. The shareholder claims that the 2.5 million shares received
are unrestricted and should be reflected as such. On August 19, 2014, the Company filed a motion to dismiss the lawsuit. The lawsuit
was dismissed on October 31, 2014.
In November 2017, two shareholders of
AppTech, one who previously filed the 2014 lawsuit in the State of Washington, filed another lawsuit against the Company in the
State of California, claiming the same accusations as the previously filed lawsuit which was dismissed. The lawsuit has been transferred
to the United States District Court for the Southern District of California. The Company filed the defendants answer, affirmative
defenses and counter claims. Management believes that the Plaintiff misrepresented and misled AppTech during the merger. The court
has encouraged the parties to settle. Even though the Company believes the lawsuit is without merit and will vigorously defend,
the Company has made several offers to settle. On December 19, 2019, the Company entered into a settlement and release agreement.
The Company has recorded the liability as of December 31, 2019 for the total obligation of $240,000 to be paid out over three
years beginning February 15, 2020. The 2019 impact is recorded in general and administrative expenses. On January 24, 2021,
the parties entered a stipulation modifying the repayment schedule of the settlement. A payment was due February 15, 2021 which
has not been paid to date.
Former
Landlord Lawsuit
In
September 2018, the landlord for our former office space lease filed a limited civil lawsuit against the Company in the State
of California. The Company reached an agreement that resulted in a stipulation for judgment on October 28, 2018. The stipulated
judgment was for $42,432 including attorney fees and court costs plus interest for which the Company recorded as a liability as
of December 31, 2018. The stipulated judgment was paid in full on August 16, 2019.
Patent
Acquisition Lawsuit
In September 2018, a complaint was filed in
San Diego superior court for a breach of contract arising from a written agreement for the purchase of a judgment to which AppTech
was not a party. The purchase of the judgment was part of the transaction to acquire the patents. AppTech substantially performed
under the agreement but the second agreement to extend the final payment was executed under duress. On October 26, 2018, the Company
filed an answer that denied each and every purported allegation and cause of action and further denied that they caused any damage
or loss. On December 3, 2019, the Company entered into a conditional settlement providing the terms of the conditional settlement
have been completed by October 1, 2020. The conditional settlement amount of $150,000 is paid in monthly installments of $15,000.
The settlement installments paid for the nine months ended September 30, 2020 was $74,500. On December 30, 2020, full payment
was made in accordance with a modified settlement payment schedule.
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Significant
Contract
In August 2020, the Company entered into
a strategic partnership with Silver Alert Services, LLC. doing business as Lifelight Systems ("Lifelight"), expanding
into the telehealth sphere. The partnership will expand AppTech's reach into new markets and provide advanced technological
solutions for the telehealth and personal emergency response systems markets. The strategic partnership provides a promissory note
for up to one million dollars at a rate of three percent upon successful completion of Lifelight's Personal Emergency Response
System (PERS) pilot program. Also Lifelight is granted the right to purchase four million five hundred thousand shares of AppTech
Corp. exercisable at $0.01 for one million shares and $0.25 for three million five hundred thousand shares upon the successful
completion of the PERS pilot program. In accordance with the agreement, the contract, and all such liabilities and rights, are
contingent upon a Lifelight's successful completion of its PERS pilot program and AppTech securing financing.
In
January 2019, the Company entered into an agreement with a broker dealer to provide capital raising activities. Under the terms
of the agreement the broker dealer is to make a minimum of $90,000 in advisory fees. In addition, there are various other provisions
within the agreement which include a 10% placement fee, warrants to purchase common stock, a 4% transaction fee, etc.
Employee
versus Contractor Classification
The
Company compensates various individuals as consultants. Annually, these consultants are issued Form 1099s for amounts paid to
them. In addition, these consultants do not have arrangements in which specify compensation payable to them. The Company risks
potential tax and legal actions if these consultants are deemed to be employees by governmental agencies.
NOTE
9 – STOCKHOLDERS' DEFICIT
Series
A Preferred Stock
The
Company is authorized to issue 100,000 shares of $0.001 par value Series A preferred stock ("Series A"). There were
fourteen (14) shares of Series A preferred stock outstanding as of September 30, 2020 and December 31, 2019. The holders of Series
A preferred stock are entitled to one vote per share on an "as converted" basis on all matters submitted to a vote
of stockholders and are not entitled to cumulate their votes in the election of directors. The holders of Series A preferred stock
are entitled to any dividends that may be declared by the Board of Directors out of funds legally available, therefore on a pro
rata basis according to their holdings of shares of Series A preferred stock, on an as converted basis. In the event of liquidation
or dissolution of the Company, holders of Series A preferred stock are entitled to share ratably in all assets remaining after
payment of liabilities and have no liquidation preferences. Holders of Series A preferred stock have a right to convert each share
of Series A into 780 shares common stock.
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Common
Stock
The
Company is authorized to issue 1,000,000,000 shares of $0.001 par value common stock. There were 87,821,825 and 84,153,825, respectively,
shares of common stock outstanding as of September 30, 2020 and December 31, 2019. The holders of common stock are entitled to
one vote per share on all matters submitted to a vote of stockholders and are not entitled to cumulate their votes in the election
of directors. The holders of common stock are entitled to any dividends that may be declared by the board of directors out of
funds legally available, therefore subject to the prior rights of holders of any outstanding shares of preferred stock and any
contractual restrictions against the payment of dividends on common stock. In the event of liquidation or dissolution of the Company,
holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation
preferences of any outstanding shares of preferred stock. Holders of common stock have no preemptive or other subscription rights
and no right to convert their common stock into any other securities.
During
the nine months ended September 30, 2020 and 2019, the Company issued 3,568,000 and 439,500, respectively, shares of common stock
to several consultants in connection with business development, accounts payable conversion and professional services. The Company
valued the common stock issuances at $2,357,125 and $89,134, respectively, based upon the closing market price of the Company's
common stock on the date in which the performance was complete or issued based upon the vesting schedule and the closing market
price of the Company's common stock on the date of the agreement. The amounts were expensed to general and administrative
expenses on the accompanying consolidated statements of operations. The accounts payable conversion was $152,500.
Stock
Options
On
August 25, 2020, the Company issued an option to purchase 100,000 shares of common stock at $0.25 per share with an expiration
date of February 25, 2021. The options were valued at $140,945 and include within stock issued for business development consulting
services. The Company valued the options at $140,945 using the Black Scholes valuation model with the following variables; expected
volatility of 100%, risk free rate of 0.11%, fair market value of the Company's common stock of $1.48 on the date of grant,
and an expected life of 0.50 years. The option was exercised on August 26, 2020.
Common
Stock Repurchase Option
On
January 23, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 300,000 shares of
common stock from a third party at $0.05 per share. The Company assigned its rights to the repurchase option agreement to a third
party in exchange for compensation. The common stock repurchase options were exercised on January 26, 2020 for which the Company
received $98,750 in proceeds which was recorded as additional paid-in capital.
On
February 26, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 266,115 shares of
common stock from a third party at $0.05 per share. The Company assigned its rights to the repurchase option agreement to a third
party in exchange for compensation. The common stock repurchase option was exercised on February 27, 2020 for which the Company
received $25,281 in proceeds which was recorded as additional paid-in capital.
On
March 18, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 250,000 shares of common
stock from a third party at $0.05 per share. The Company assigned its rights to the repurchase option agreement to a third party
in exchange for compensation. The common stock repurchase option was exercised on March 19, 2020 for which the Company received
$62,500 in proceeds which was recorded as additional paid-in capital.
On
April 24, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 55,000 shares of common
stock from a third party at $0.05 per share. The Company assigned its rights to the repurchase option agreement to a third party
in exchange for compensation. The common stock repurchase option was exercised on April 27, 2020 for which the Company received
$19,250 in proceeds which was recorded as additional paid-in capital.
F-
34
On
August 26, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 250,000 shares of common
stock from a third party at $0.07 per share. The Company assigned its rights to the repurchase option agreement to a third party
in exchange for compensation. The common stock repurchase option was exercised on August 26, 2020 for which the Company received
$45,000 in proceeds which was recorded as additional paid-in capital.
NOTE
10 – SUBSEQUENT EVENTS
Management
has evaluated subsequent events pursuant to the requirements of ASC Topic 855 and has determined that no material subsequent events
exist other than those disclosed below.
On October 1, 2020, the Company entered
into a strategic partnership with NEC Payments B.S.C through the deployment of NECP's technologies, AppTech will extend
its product offering to include flexible, scalable and secure payment acceptance and issuer payment processing that supports the
digitization of business and consumer financial services and the migration of cash and other legally payment types to distanced
and contactless card and real time payment transactions. NECP will assist AppTech to complete the development of its text payment
solution and provide best in class software that complements AppTech's intellectual property. AppTech will also receive
licenses to utilize NECP's digital banking platform, including exclusivity in the United States for its payment acceptance
software.
All terms of this agreement are contingent
upon AppTech Corp. receiving funding in excess of three million dollars within forty-five days of execution. NECP will be awarded
a fifteen percent equity stake in AppTech Corp. on a fully diluted basis.
On
October 2, 2020, the Company entered into an independent contractor services agreement with Innovations Realized, LLC to develop
a strategic operating plan focused on the design, execution and go to market aspects of the NECP platform to enter the United
States market.
On
October 21, 2020, the Company entered into an engagement agreement with Emerging Markets Consulting, LLC. to be the investor relations
firm for the Company.
On
October 14, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 2,000,000 shares of
common stock from a third party at $0.20 per share. The Company assigned a portion of the repurchase option agreement to a third
party in exchange for compensation. The common stock repurchase option for 13,333 shares was exercised on October 14, 2020 for
which the Company received $7,333 in proceeds which was recorded as additional paid-in capital.
On
October 14, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 2,000,000 shares of
common stock from a third party at $0.20 per share. The Company assigned a portion of the repurchase option agreement to a third
party in exchange for compensation. The common stock repurchase option for 10,000 shares was exercised on October 15, 2020 for
which the Company received $5,500 in proceeds which was recorded as additional paid-in capital.
On
October 14, 2020, the Company entered into a common stock repurchase option agreement to purchase or assign 2,000,000 shares of
common stock from a third party at $0.20 per share. The Company assigned a portion of the repurchase option agreement to a third
party in exchange for compensation. The common stock repurchase option for 20,000 shares was exercised on October 29, 2020 for
which the Company received $11,000 in proceeds which was recorded as additional paid-in capital.
On
October 29, 2020, the Company had an option for 100,000 shares of common stock exercised by a consultant for $0.30 per share.
On
November 25, 2020, the Company entered into a securities purchase agreement with EMA Financial, LLC in which the Company sold
a convertible note in the principal amount of $300,000 and a common stock purchase warrant permitting the holder to purchase 200,000
shares of common stock for an exercise price of $1.50 per share, subject to the terms and conditions of the agreement.
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On
December 21, 2020, the Company sold the domain "bubblepay.com" for $72,500 to a third party.
On December 30, 2020, the Company amended
its Strategic Partnership Agreement and Purchase Option Agreement with Silver Alert dated August 21, 2020. The amendment altered
and/or added certain definitions and the loan disbursements in the Strategic Partnership Agreement. Further, the Repurchase Option
Agreement was amended to incorporate a vesting schedule related to the gross revenue generated from the partnership.
On
February 03, 2021, the Company entered into an amendment to a common stock repurchase option agreement to purchase or assign 2,000,000
shares of common stock from a third party at $0.20 per share. The Company assigned a portion of the repurchase option agreement
to a third party in exchange for compensation. The common stock repurchase option for 50,000 shares was exercised on February
12, 2021 for which the Company received $33,750 in proceeds which was recorded as additional paid-in capital.
On
February 11, 2021, the Company entered into an Amended and Restated Subscription License and Operating Agreement with NEC Payments
B.S.C. The restated document alters the fees and timing of payments associated with the agreement.
See
note 8 for additional subsequent events.
F-
36
Common
Stock
APPTECH
CORP.
PROSPECTUS
,
2021
Through
and including                 , 2021 (the
25th day after the date of this prospectus), all dealers effecting transactions in these securities, whether or not participating
in this offering, may be required to deliver a prospectus. This is in addition to a dealer's obligation to deliver a prospectus
when acting as an underwriter and with respect to an unsold allotment or subscription.
PART
II
INFORMATION
NOT REQUIRED IN PROSPECTUS
Item
13. Other Expenses of Issuance and Distribution
The
following table sets forth the costs and expenses, other than the underwriting discounts and commissions, payable by the registrant
in connection with the sale of common stock being registered. All amounts are estimates except for the SEC registration fee, the
Financial Industry Regulatory Authority, or FINRA, filing fee and [ ] additional listing fee.
Item
Amount
                                         to
be paid
SEC registration fee
$
[•]
FINRA filing fee
[•]
Printing fees and expenses
[•]
Legal fees and expenses
[•]
Accounting fees and expenses
[•]
Underwriter's expenses
[•]
Transfer agent's fees and expenses
[•]
Miscellaneous fees and expenses
[•]
Total
$
[•]
Item
14. Indemnification of Directors and Officers
Section
17-16-851 of the Wyoming Business Corporation Act provides that a corporation may indemnify a director against liability incurred
in a proceeding if:
(i)
(A) the director conducted himself in good faith; and
(B)
he reasonably believed that his conduct was in or at least not opposed to the corporation's best interests; and
(C)
in the case of any criminal proceeding, the director had no reasonable cause to believe his conduct was unlawful; or
(ii)
the director engaged in conduct for which broader indemnification has been made permissible or obligatory under a provision of
the articles of incorporation, as authorized by Section 17-16-202(b)(v) of the Wyoming Business Corporation Act.
A
director's conduct with respect to an employee benefit plan for a purpose the director reasonably believed to be in the
interests of the participants in and beneficiaries of the plan is conduct that satisfies the requirement of subparagraph (a)(i)(B) of
Section 17-16-851.
The
termination of a proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent is
not, of itself, determinative that the director did not meet the standard of conduct described in Section 17-16-851.
Article
XIV of our Bylaws states the we shall indemnify the directors, officers, agents and employees of the Company in the manner and
to the full extent provided in the General Corporation Law of the State of Wyoming
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1
Item
15. Recent Sales of Unregistered Securities
During
2020
year-to-date,
we
assigned
our
rights
to
stock
repurchase
option
agreements
to third parties
resulting
in
net
proceeds
of $274,614 and $25,000 from warrants exercised.
During
the
nine
months
ended September 30, 2020, 3,568,000
shares
of common
stock
were issued
to
several
consultants
in connection
with
business development
and
professional
services rendered
valued
at $2,357,125.
During
the
nine
months
ended September 30, 2020,
no
shares
of
common stock were
issued
to
members
of
the
Board
of
Directors.
All
Issuances were exempt from registration requirements of Section 5 of the Securities Act of 1933 as they did not involve a public
offering under Section 4(a)(2) and were issued as restricted securities
as
defined
in
Rule
144 of the Act.
Item
16. Exhibits and financial statement schedules
(a)
Exhibits
Exhibit
Description
1.1
Form
    of Underwriting Agreement **
3.1
AppTech Corp. Articles of Conversion filed October 25, 2006 (incorporated by reference to Exhibit 3.1 to Form 10-12G/A filed February 14, 2020)
3.2
AppTech Corp. Articles of Incorporation filed October 25, 2006 (incorporated by reference to Exhibit 3.2 to Form 10-12G/A filed February 14, 2020)
3.3
AppTech Corp. Certificate of Designation filed May 09, 2007 (incorporated by reference to Exhibit 3.3 to Form 10-12G/A filed February 14, 2020)
3.4
AppTech Corp. Certificate of Correction filed June 04, 2007 (incorporated by reference to Exhibit 3.4 to Form 10-12G/A filed February 14, 2020)
3.5
AppTech Corp. Certificate of Designation filed June 06, 2007 (incorporated by reference to Exhibit 3.5 to Form 10-12G/A filed February 14, 2020)
3.6
AppTech Corp. Amendment to Certificate of Designation After Issuance of Class or Series filed November 17, 2008 (incorporated by reference to Exhibit 3.6 to Form 10-12G/A filed February 14, 2020)
3.7
AppTech Corp. Certificate of Amendment filed October 26, 2009 (incorporated by reference to Exhibit 3.7 to Form 10-12G/A filed February 14, 2020)
3.8
AppTech Corp. Certificate of Amendment filed October 27, 2009 (incorporated by reference to Exhibit 3.8 to Form 10-12G/A filed February 14, 2020)
3.9
AppTech Corp. Certificate of Designation filed April 21, 2010 (incorporated by reference to Exhibit 3.9 to Form 10-12G/A filed February 14, 2020)
3.10
AppTech Corp. Amendment to Certificate of Designation After Issuance of Class or Series filed April 27, 2010 (incorporated by reference to Exhibit 3.10 to Form 10-12G/A filed February 14, 2020)
3.11
AppTech Corp. Certificate of Change filed July 22, 2010 (incorporated by reference to Exhibit 3.11 to Form 10-12G/A filed February 14, 2020)
3.12
AppTech Corp. Amendment to Certificate of Designation After Issuance of Class or Series filed October 26, 2010 (incorporated by reference to Exhibit 3.12 to Form 10-12G/A filed February 14, 2020)
3.13
AppTech Corp. Amendment to Certificate of Designation After Issuance of Class or Series filed October 26, 2010 (incorporated by reference to Exhibit 3.13 to Form 10-12G/A filed February 14, 2020)
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3.14
AppTech Corp. Amendment to Certificate of Designation After Issuance of Class or Series filed October 28, 2010 (incorporated by reference to Exhibit 3.14 to Form 10-12G/A filed February 14, 2020)
3.15
AppTech Corp. Amendment to Certificate of Designation After Issuance of Class or Series filed April 08, 2011 (incorporated by reference to Exhibit 3.15 to Form 10-12G/A filed February 14, 2020)
3.16
AppTech Corp. Certificate of Amendment filed June 06, 2011 (incorporated by reference to Exhibit 3.16 to Form 10-12G/A filed February 14, 2020)
3.17
AppTech Corp. Articles of Domestication filed July 18, 2011 (incorporated by reference to Exhibit 3.17 to Form 10-12G/A filed February 14, 2020)
3.18
AppTech Corp. Bylaws dated May 07, 2013 (incorporated by reference to Exhibit 3.18 to Form 10-12G/A filed February 14, 2020)
3.19
AppTech Corp. Certificate of Domestication filed July 09, 2013 (incorporated by reference to Exhibit 3.19 to Form 10-12G/A filed February 14, 2020)
3.20
AppTech Corp. Articles of Amendment filed October 31, 2013 (incorporated by reference to Exhibit 3.20 to Form 10-12G/A filed February 14, 2020)
3.21
AppTech Corp. Certificate of Incorporation filed July 29, 2015(incorporated by reference to Exhibit 3.21 to Form 10-12G/A filed February 14, 2020)
4.1
Specimen Stock Certificate of AppTech Corp.'s Common Stock (incorporated by reference to Exhibit 4.1 to Form 10-12G/A filed February 14, 2020)
5.1
Form
    of Opinion of Nelson Mullins Riley & Scarborough LLP**
10.1
Asset Purchase Agreement dated December 04, 2013 (incorporated by reference to Exhibit 10.1 to Form 10-12G/A filed February 14, 2020)
10.2
Amendment to Asset Purchase Agreement dated June 22, 2017  (incorporated by reference to Exhibit 10.2 to Form 10-12G/A filed February 14, 2020)
10.3
Lease Agreement dated November 15, 2018 (incorporated by reference to Exhibit 10.3 to Form 10-12G/A filed February 14, 2020)
10.4
Engagement Letter dated September 23, 2019 (incorporated by reference to Exhibit 10.4 to Form 10-12G/A filed February 14, 2020)
10.5
Lease & Purchase Option Agreement dated January 22, 2020 (incorporated by reference to Exhibit 10.5 to Form 10-K filed March 30, 2020)
10.6
Subscription License and Service Agreement dated as of October 02, 2020, by and among AppTech Corp. and NEC Payments B.S.C. (c) (incorporated by reference to Exhibit 10.1 to Form 8-K filed October 7, 2020)
10.7
Digital Banking Platform Operating Agreement dated as of October 02, 2020, by and among AppTech Corp. and NEC Payments B.S.C. (c) (incorporated by reference to Exhibit 10.2 to Form 8-K filed October 7, 2020)
10.8
Subscription License Order Form dated as of October 02, 2020, by and among AppTech Corp. and NEC Payments B.S.C. (c) (incorporated by reference to Exhibit 10.3 to Form 8-K filed October 7, 2020)
10.9
Registration Rights Agreement dated as of October 02, 2020, by and among AppTech Corp. and NEC Payments B.S.C. (c) (incorporated by reference to Exhibit 10.4 to Form 8-K filed October 7, 2020)
10.10
Strategic Partnership Agreement dated as of August 21, 2020, by and among AppTech Corp. and Silver Alert Services LLC, doing business as LifeLight Systems (incorporated by reference to Exhibit 10.1 to Form 8-K filed August 26, 2020)
10.11
Amendment No. 1 dated to the Strategic Partnership Agreement dated as of August 21, 2020, by and among AppTech Corp. and Silver Alert Services LLC, doing business as LifeLight Systems
*
14
AppTech Code of Business Conduct (incorporated by reference to Exhibit 4.2 to Form 10-K filed March 30, 2020)
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3
23.1
Consent of dbbmckennon
*
23.2
Consent
    of Nelson Mullins Riley & Scarborough LLP (included in Exhibit 5.1)**
24.1
Power
    of Attorney (included on signature page)
99.1
Audit Committee Charter (incorporated by reference to Exhibit 4.3 to Form 10-Q filed November 16, 2020)
99.2
Compensation Committee Charter (incorporated by reference to Exhibit 4.4 to Form 10-Q filed November 16, 2020)
99.3
Corporate Governance and Nominating Committee Charter
*
*
Filed herewith
**
To be filed by amendment
Item
17. Undertakings
(a)
The undersigned
    registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing
    of the registrant's annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934
    (and, where applicable, each filing of an employee benefit plan's annual report pursuant to section 15(d) of the Securities
    Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration
    statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to
    be the initial bona fide offering thereof.
(b)
Insofar as indemnification
    for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of
    the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of
    the SEC such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event
    that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or
    paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding)
    is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant
    will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate
    jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be
    governed by the final adjudication of such issue.
(c)
The undersigned
    Registrant hereby undertakes that:
(1)
For purposes of
    determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part
    of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the Registrant pursuant
    to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of
    the time it was declared effective.
(2)
For the purpose
    of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus
    shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities
    at that time shall be deemed to be the initial bona fide offering thereof.
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4
Signatures
Pursuant
to the requirements of the Securities Act of 1933, as amended, the Registrant has duly caused this Registration Statement on Form
S-1 to be signed on its behalf by the undersigned, thereunto duly authorized, in Carlsbad, California, on February 16, 2021.
AppTech Corp.
By:
/s/
Luke D'Angelo
Name:
        Luke D'Angelo
Title:
        Chief Executive Officer and Chairman of the Board (Principal Executive Officer)
POWER
OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each
person whose signature appears below constitutes and appoints Luke D'Angelo [his/her] true and lawful attorney-in-fact and
agent with full power of substitution and re-substitution, for him/her and in his name, place and stead, in any and all capacities
to sign any or all amendments (including, without limitation, post-effective amendments) to this Registration Statement, any related
Registration Statement filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended, and any or all pre- or post-effective
amendments thereto, and to file the same, with all exhibits thereto, and all other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorney-in-fact and agent, full power and authority to do and perform each
and every act and thing requisite and necessary to be done in and about the premises, as fully for all intents and purposes as
he or she might or could do in person, hereby ratifying and confirming that said attorney-in-fact and agent, or any substitute
or substitutes for him, may lawfully do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Act
of 1933, as amended, the following persons in the capacities and on the dates indicated have signed this Registration Statement
below.
Signature
Title
Date
Chief
    Executive Officer and Chairman of the Board (Principal Executive Officer)
February
                                         16, 2021
Luke
    D'Angelo
/s/
    Gary Wachs
Chief
    Financial Officer and Director (Principal Financial Officer)
February
                                         16, 2021
Gary
    Wachs
/s/
    Michael Gross
Director
February
                                         16, 2021
Michael
    Gross
/s/
    Christopher Williams
Director
February
                                         16, 2021
Christopher
    Williams
/s/
    Mengyin H. Liang
Director
February
                                         16, 2021
Mengyin
    H. Liang "Roz Huang"
/s/
    Michael O'Neal
Director
February
                                         16, 2021
Michael
    O'Neal
/s/
    William Huff
Director
February
                                         16, 2021
William
    Huff
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