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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>As filed with the Securities and Exchange
Commission on May 13, 2022</B></P>

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM S-1</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>TOUGHBUILT
INDUSTRIES, Inc.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact name of registrant as specified in its
charter)</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; border-bottom: black 1pt solid; text-align: center"><B>Nevada</B></TD>
    <TD STYLE="width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 20%; border-bottom: black 1pt solid; text-align: center"><B>3420</B></TD>
    <TD STYLE="width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 36%; border-bottom: black 1pt solid; text-align: center"><B>46-0820877</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(State or Other Jurisdiction of Incorporation or Organization)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(Primary Standard Industrial Classification Code Number)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(I.R.S. Employer Identification No.)</TD></TR>
</TABLE>

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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: 0; text-align: center"><B>25371 Commercentre Drive, Suite 200</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Lake Forest, CA 92630</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Telephone: (949) 528-3100</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Address, including zip code, and telephone
number, including area code,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">of registrant&rsquo;s principal executive offices)</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>25371 Commercentre Drive, Suite 200</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Lake Forest, CA 92630</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Telephone: (949) 528-3100</B></P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-align: center">With copies to:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: center"><B>Ross D. Carmel, Esq.</B></TD>
    <TD STYLE="width: 50%; text-align: center"><B>John J. Hart, Esq.</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><B>Philip Magri, Esq.</B></TD>
    <TD STYLE="text-align: center"><B>Ellenoff Grossman &amp; Schole LLP</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><B>Carmel, Milazzo &amp; Feil LLP</B></TD>
    <TD STYLE="text-align: center"><B>1345 Avenue of the Americas</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><B>55 West 39<SUP>th</SUP> Street, 18<SUP>th</SUP> Floor</B></TD>
    <TD STYLE="text-align: center"><B>New York, NY 10105</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><B>New York, NY 10018</B></TD>
    <TD STYLE="text-align: center"><B>Tel: (212) 370-1300</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><B>Tel: (212) 658-0458</B></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><B>Fax: (646) 838-1314</B></TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

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

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

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



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

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

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

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

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

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



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

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0">Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of &ldquo;large accelerated
filer,&rdquo; &ldquo;accelerated filer&rdquo; and &ldquo;smaller reporting company&rdquo; in Rule 12b-2 of the Exchange Act.</P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 52%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large accelerated filer </FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="width: 48%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated filer </FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</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">Non-accelerated filer </FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller reporting company </FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging growth company </FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</FONT></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; text-align: justify"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><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 the Registration Statement shall become effective on such date as the Securities
and Exchange Commission acting pursuant to said Section 8(a), may determine.</B></P>

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

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

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


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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%"><FONT STYLE="font-size: 10pt; color: Red"><B>PRELIMINARY PROSPECTUS</B></FONT></TD>
    <TD STYLE="width: 50%; text-align: right"><FONT STYLE="font-size: 10pt; color: Red"><B>SUBJECT TO COMPLETION, DATED MAY 13,
    2022</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;<IMG SRC="cm077_img01.jpg" ALT=""></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: center"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Up to ______________ Units, Each Unit Consisting of One
Share of Common Stock and One Warrant to Purchase One Share of Common Stock</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Up to _________________ Pre-funded Units, Each Pre-funded Unit
Consisting of One Pre-funded Warrant to Purchase One Share of Common Stock and One Warrant to Purchase One Share of Common Stock</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Placement Agent Warrants to Purchase __________________
Shares of Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We are offering up to ________&nbsp;&nbsp;units, each unit consisting
of one share of common stock and one warrant to purchase one share of common stock. The warrants included in the units have an
exercise price of $&nbsp;___ per share and will be immediately exercisable and will expire &nbsp;_________&nbsp;&nbsp;years from
the date of issuance. The offering price of the units is $ ___&nbsp;per unit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We are also offering to
those purchasers, if any, whose purchase of units in this offering would otherwise result in such purchaser, together with its
affiliates and certain related parties, beneficially owning more than 4.99% (or, at the election of the purchaser, 9.99%) of our
outstanding shares of common stock immediately following the consummation of this offering, the opportunity to purchase, if any
such purchaser so chooses, pre-funded units in lieu of units that would otherwise result in such purchaser&rsquo;s beneficial ownership
exceeding 4.99% (or, at the election of the purchaser, 9.99%) of our outstanding shares of common stock. Each pre-funded unit consists
of one pre-funded warrant to purchase one share of common stock and one warrant to purchase one share of common stock. The purchase
price of each pre-funded unit will be equal to the price per unit being sold to the public in this offering, minus $0.0001, and
the exercise price of each pre-funded warrant included in the pre-funded units will be $0.0001 per share. The pre-funded warrants
included in the pre-funded units will be immediately exercisable and may be exercised at any time until all of the pre-funded warrants
are exercised in full. The warrant included in the pre-funded unit is in the same form as the warrant included in the unit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">For each pre-funded unit
we sell, the number of units we are offering will be decreased on a one-for-one basis. The units and the pre-funded units will
not be issued or certificated. The shares of common stock or pre-funded warrants, as the case may be, and the warrants included
in the units or the pre-funded units can only be purchased together in this offering, but the securities contained in the units
or pre-funded units will be immediately separable upon issuance and will be issued separately. The shares of common stock issuable
from time to time upon exercise of the warrants and the pre-funded warrants are also being offered by this prospectus. The registration
statement of which this prospectus forms a part also registers the common stock purchase warrants to be issued to the Placement
Agent and the shares of common stock issuable upon exercise thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 26pt">Our common stock is listed
on the Nasdaq Capital Market under the symbol &ldquo;TBLT.&rdquo; The last reported sale price of our common stock on May 12, 2022
was $9.65 per share.&nbsp;In this offering, the actual public offering price per unit or pre-funded unit, as the case may be,
will be determined between us, the Placement Agent and the investors in the offering, and may be at a discount to the current market
price of our common stock. Therefore, the assumed public offering price used throughout this prospectus may not be indicative of
the final offering price. There is no established public trading market for the warrants or the pre-funded warrants, and we do
not expect such a market to develop. In addition, we do not intend to apply for a listing of the warrants or the pre-funded warrants
on any national securities exchange or other nationally recognized trading system.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 26pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 26pt">We have engaged H.C. Wainwright
&amp; Co., LLC, or the Placement Agent, to act as our exclusive placement agent in connection with the securities offered by this
prospectus. The Placement Agent has agreed to use its reasonable best efforts to arrange for the sale of the securities offered
by this prospectus. The Placement Agent is not purchasing or selling any of the securities we are offering, and the Placement Agent
is not required to arrange the purchase or sale of any specific number of securities or dollar amount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 26pt">&nbsp;</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 26pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 26pt">We have agreed to pay the
Placement Agent the Placement Agent fees set forth in the table below, which assumes that we sell all of the securities offered
by this prospectus. See &ldquo;<I>Plan of Distribution</I>&rdquo; on page 45 of this prospectus for more information regarding
these arrangements. <FONT STYLE="background-color: white">There is no minimum number of units or pre-funded units or minimum aggregate
amount of proceeds for this offering to close. The offering of the securities will terminate on the first date that we enter into
securities purchase agreements to sell the securities offered hereby.</FONT> We may sell fewer than all of the units offered hereby,
which may significantly reduce the amount of proceeds received by us, and investors in this offering will not receive a refund
if we do not sell all of the units offered hereby. In addition, we have not specified a minimum number of securities or amount
of proceeds and we have not established an escrow account in connection with this offering. Because there is no escrow account
and no minimum number of securities or amount of proceeds, investors could be in a position where they have invested in us, but
we have not raised sufficient proceeds in this offering to adequately fund the intended uses of the proceeds as described in this
prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 26pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 26pt"><B>We are a &ldquo;smaller
reporting company&rdquo; and an &ldquo;emerging growth company&rdquo; as defined under the federal securities laws and, as such,
we may continue to elect to comply with certain reduced public company reporting requirements in future reports.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 26pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 26pt"><B>Investing in our securities
involves a high degree of risk. See &ldquo;<I>Risk Factors</I>&rdquo; beginning on page 15</B>&nbsp;<B>of this prospectus.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 26pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 26pt"><B>Neither the Securities
and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this
prospectus is truthful or complete. Any representation to the contrary is a criminal offense.</B></P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="border-bottom: black 1pt solid; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Per Unit</B></FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; padding-top: 0.75pt; padding-right: 0.75pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Per Pre-</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Funded</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Unit</B></P></TD>
    <TD STYLE="white-space: nowrap; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Total</B></FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; width: 61%; text-align: justify"><FONT STYLE="font-size: 10pt">Public offering price</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 1%; text-align: justify"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 10%; text-align: right"></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 1%; text-align: justify"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 10%; text-align: right"></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 1%; text-align: justify"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 10%; text-align: right"></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 1%; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">Placement agent fees<SUP>(1)</SUP></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">Proceeds, before expenses, to us (2)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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


<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="white-space: nowrap; width: 3%; text-align: justify"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="width: 97%; text-align: justify"><FONT STYLE="font-size: 10pt">We have also agreed to pay the Placement Agent a management fee equal to 0.5% of the gross proceeds raised in this offering and to reimburse the Placement Agent for its non-accountable expenses in the amount of $50,000, for its legal fees and expenses and other out-of-pocket expenses in an amount up to $100,000, and for its clearing expenses in the amount of $15,950. In addition, we have agreed to issue the Placement Agent, or its designees, warrants to purchase a number of shares of common stock equal to 6.0% of the aggregate number of shares of common stock, including shares of common stock underlying the pre-funded warrants, sold in this offering with an exercise price of $___&nbsp;per share, or 125% of the public offering price per share. See &ldquo;<I>Plan of Distribution</I>&rdquo; for a description of the compensation to be received by the Placement Agent.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="white-space: nowrap; width: 3%; text-align: justify"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="width: 97%; text-align: justify"><FONT STYLE="font-size: 10pt">Because there is no minimum number of securities or amount of proceeds required as a condition to closing in this offering, the actual public offering amount, Placement Agent fees, and proceeds to us, if any, are not presently determinable and may be substantially less than the total maximum offering amounts set forth above. For more information, see &ldquo;<I>Plan of Distribution</I>.&rdquo;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 26pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 26pt">Delivery of the securities
offered hereby is expected to be made on or about , 2022, subject to satisfaction of certain customary closing conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 26pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>H.C. Wainwright
&amp; Co.</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Prospectus dated &nbsp;&nbsp;&nbsp;&nbsp;, 2022</B></P>

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><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; background-color: rgb(204,238,255)">
    <TD STYLE="width: 92%; text-align: left"><A HREF="#a_001" STYLE="-sec-extract: exhibit">CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS</A></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; text-align: right"><A HREF="#a_001" STYLE="-sec-extract: exhibit">2</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_002">PROSPECTUS SUMMARY</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><A HREF="#a_002">4</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_003">OFFERING SUMMARY</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><A HREF="#a_003">11</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_004">RISK FACTORS</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><A HREF="#a_004">15</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_005">USE OF PROCEEDS</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><A HREF="#a_005">23</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_007">DIVIDEND POLICY</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><A HREF="#a_007">23</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_008" STYLE="-sec-extract: exhibit">CAPITALIZATION</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><A HREF="#a_008" STYLE="-sec-extract: exhibit">24</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#a_009">DILUTION</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><A HREF="#a_009">25</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_017" STYLE="-sec-extract: exhibit">DESCRIPTION OF SECURITIES</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><A HREF="#a_017" STYLE="-sec-extract: exhibit">27</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_018">MATERIAL U.S. FEDERAL INCOME TAX&nbsp;CONSEQUENCES TO NON-U.S. HOLDERS</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><A HREF="#a_018">38</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_019" STYLE="-sec-extract: exhibit">PLAN OF DISTRIBUTION</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><A HREF="#a_019" STYLE="-sec-extract: exhibit">39</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#a_020">EXPERTS</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><A HREF="#a_020">41</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_021">LEGAL MATTERS</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><A HREF="#a_021">41</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_023">INFORMATION INCORPORATED BY REFERENCE</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><A HREF="#a_023">41</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_024">WHERE YOU CAN FIND MORE INFORMATION</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><A HREF="#a_024">42</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_025">FINANCIAL STATEMENTS</A></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><A HREF="#a_025">43</A></TD></TR>
</TABLE>

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


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">You should rely only on
the information contained in this prospectus or any prospectus supplement or amendment. Neither we, nor the Placement Agent, have
authorized any other person to provide you with information that is different from, or adds to, that contained in this prospectus.
If anyone provides you with different or inconsistent information, you should not rely on it. Neither we nor the Placement Agent
take responsibility for and can provide no assurance as to the reliability of, any other information that others may give you.
You should assume that the information contained in this prospectus, or any free writing prospectus is accurate only as of the
date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of our securities. Our business,
financial condition, results of operations and prospects may have changed since that date. We are not making an offer of any securities
in any jurisdiction in which such offer is unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">No action is being taken
in any jurisdiction outside the United States to permit a public offering of our securities or possession or distribution of this
prospectus in that jurisdiction. Persons who come into possession of this prospectus in jurisdictions outside the United States
are required to inform themselves about and to observe any restrictions as to this public offering and the distribution of this
prospectus applicable to that jurisdiction.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_001"></A>CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS</P>

<P STYLE="font: bold 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: justify; text-indent: 25.9pt">This prospectus contains
&ldquo;forward-looking statements&rdquo; within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A
of the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;), and Section 21E of the Securities Exchange Act of
1934, as amended (the &ldquo;Exchange Act&rdquo;). Forward-looking statements discuss matters that are not historical facts. Because
they discuss future events or conditions, forward-looking statements may include words such as &ldquo;anticipate,&rdquo; &ldquo;believe,&rdquo;
&ldquo;estimate,&rdquo; &ldquo;intend,&rdquo; &ldquo;could,&rdquo; &ldquo;should,&rdquo; &ldquo;would,&rdquo; &ldquo;may,&rdquo;
&ldquo;seek,&rdquo; &ldquo;plan,&rdquo; &ldquo;might,&rdquo; &ldquo;will,&rdquo; &ldquo;expect,&rdquo; &ldquo;anticipate,&rdquo;
&ldquo;predict,&rdquo; &ldquo;project,&rdquo; &ldquo;forecast,&rdquo; &ldquo;potential,&rdquo; and &ldquo;continue&rdquo; or the
negatives thereof or similar expressions. Forward-looking statements speak only as of the date they are made, are based on various
underlying assumptions and current expectations about the future and are not guarantees of future performance. Such statements
involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance
or achievement to be materially different from the results of operations or plans expressed or implied by such forward-looking
statements. <B>You are cautioned to not place undue reliance on these forward-looking statements, which speak only as of their
dates.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We cannot predict all
the risks and uncertainties that may impact our business, financial condition or results of operations. Accordingly, the forward-looking
statements in this prospectus should not be regarded as representations that the results or conditions described in such statements
will occur or that our objectives and plans will be achieved, and we do not assume any responsibility for the accuracy or completeness
of any of these forward-looking statements. These forward-looking statements are found at various places throughout this prospectus
and include information concerning possible or projected future results of our operations, including statements about potential
acquisition or merger targets, strategies or plans; business strategies; prospects; future cash flows; financing plans; plans and
objectives of management; any other statements regarding future acquisitions, future cash needs, future operations, business plans
and future financial results; and any other statements that are not historical facts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">These forward-looking
statements represent our intentions, plans, expectations, assumptions and beliefs about future events and are subject to a variety
of factors and risks, including, but not limited to, those set forth under &ldquo;<I>Risk Factors</I>&rdquo; starting on page 15
of this prospectus and other risk factors disclosed under &ldquo;Item 1A. Risk Factors&rdquo; in the Company&rsquo;s Annual Report
on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on April 18, 2022 (the &ldquo;2021 Form 10-K&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">You should read these risk
factors and the other cautionary statements made in the Company&rsquo;s filings as being applicable to all related forward-looking
statements wherever they appear in this prospectus. We cannot assure you that the forward-looking statements in this prospectus
will prove to be accurate and therefore prospective investors are encouraged not to place undue reliance on forward-looking statements.
You should read this prospectus completely. Other than as required by law, we undertake no obligation to update or revise these
forward-looking statements, even though our situation may change in the future.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We caution investors not
to place undue reliance on any forward-looking statement that speaks only as of the date made and to recognize that forward-looking
statements are predictions of future results, which may not occur as anticipated. Actual results could differ materially from those
anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties described in the
2021 Form 10-K and this prospectus, as well as others that we may consider immaterial or do not anticipate at this time. Although
we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations
will prove correct. Our expectations reflected in our forward-looking statements can be affected by inaccurate assumptions that
we might make or by known or unknown risks and uncertainties, including those described in the 2021 Form 10-K and this prospectus.
These risks and uncertainties are not exclusive and further information concerning us and our business, including factors that
potentially could materially affect our financial results or condition, may emerge from time to time.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">For more information about
the risks and uncertainties the Company faces, see the section &ldquo;Risk Factors&rdquo; in this prospectus and &ldquo;Item 1A.
Risk Factors&rdquo; in our 2021 Form 10-K. Forward-looking statements speak only as of the date they are made. The Company does
not undertake and specifically declines any obligation to update any forward-looking statements or to publicly announce the results
of any revisions to any statements to reflect new information or future events or developments. We advise investors to consult
any further disclosures we may make on related subjects in our annual reports on Form 10-K and other reports that we file with
or furnish to the SEC.</P>

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Market data and certain
industry data and forecasts used throughout this prospectus were obtained from internal company surveys, market research, consultant
surveys, publicly available information, reports of governmental agencies and industry publications and surveys. Industry surveys,
publications, consultant surveys and forecasts generally state that the information contained therein has been obtained from sources
believed to be reliable, but the accuracy and completeness of such information is not guaranteed. To our knowledge, certain third-party
industry data that includes projections for future periods does not take into account the effects of the worldwide coronavirus
pandemic. Accordingly, those third-party projections may be overstated and should not be given undue weight. Forecasts are particularly
likely to be inaccurate, especially over long periods of time. In addition, we do not necessarily know what assumptions regarding
general economic growth were used in preparing the forecasts we cite. Statements as to our market position are based on the most
currently available data. While we are not aware of any misstatements regarding the industry data presented in this prospectus,
our estimates involve risks and uncertainties and are subject to change based on various factors, including those discussed under
the heading &ldquo;<I>Risk Factors</I>&rdquo; in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Solely for convenience,
our trademarks and tradenames referred to in this prospectus may appear without the &reg; or &trade; symbols, but such references
are not intended to indicate in any way that we will not assert, to the fullest extent under applicable law, our rights to these
trademarks and tradenames. All other trademarks, service marks, and trade names included or incorporated by reference into this
prospectus or the accompanying prospectus are the property of their respective owners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Throughout this prospectus,
unless otherwise designated or the context suggests otherwise,</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; text-align: right">&bull;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 95%; text-align: justify">all references to the &ldquo;Company,&rdquo; &ldquo;ToughBuilt,&rdquo; the &ldquo;registrant,&rdquo; &ldquo;we,&rdquo; &ldquo;our,&rdquo; or &ldquo;us&rdquo; in this prospectus mean ToughBuilt Industries, Inc., a Nevada corporation, and its subsidiaries;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&bull;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&ldquo;year&rdquo; or &ldquo;fiscal year&rdquo; means the Company&rsquo;s fiscal year ending December 31<SUP>st</SUP>; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&bull;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: justify">all dollar or $ references refer to United States dollars.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>


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

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

<DIV STYLE="border: Black 1pt solid; padding: 3pt">

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_002"></A>PROSPECTUS SUMMARY</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>This summary provides a brief overview of
the key aspects of our business and our securities. The reader should read the entire prospectus carefully, especially the risks
of investing in our securities discussed under &ldquo;Risk Factors.&rdquo; Some of the statements contained in this prospectus,
including statements under &ldquo;Offering Summary&rdquo; and &ldquo;Risk Factors&rdquo; as well as those noted in the documents
incorporated herein by reference, are forward-looking statements and may involve a number of risks and uncertainties. Our actual
results and future events may differ significantly based upon a number of factors. The reader should not put undue reliance on
the forward-looking statements in this document, which speak only as of the date on the cover of this prospectus. </I></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We were formed to
design, manufacture, and distribute innovative tools and accessories to the building industry. We market and distribute
various home improvement and construction product lines for both Do-It-Yourself (&ldquo;DIY&rdquo;) and professional markets
under the TOUGHBUILT&reg; brand name, within the global multibillion-dollar per year tool market. All of our products are
designed by our in-house design team. Since our initial launch of product sales eight years ago, we have experienced growth
in annual sales from approximately $1,000,000 in 2013 to approximately $70,000,000 in 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our business is currently
based on the development of innovative and state-of-the-art products, primarily in tools and hardware category, with particular
focus on building and construction industry with the ultimate goal of making life easier and more productive for contractors and
workers alike. Our three major categories contain a total of 11 product lines, consisting of (i) Soft Goods, which includes kneepads,
tool bags, pouches, and toolbelts; (ii) Metal Goods, which consists of sawhorses, tool stands, and workbench; and (iii) Utility
Products, which includes utility knives, aviation snips, shears, lasers, and levels. The Company also has several additional categories
and product lines in various stages of development.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our mission consists,
of providing products to the building and home improvement communities that are innovative, of superior quality derived in part
from enlightened creativity for our end users while enhancing performance, improving well-being, and building high brand loyalty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We operate through the
following subsidiaries: (i) ToughBuilt Industries UK Limited; (ii) ToughBuilt Mexico; (iii) ToughBuilt Amenia LLC; and (iv) ToughBuilt
Brazil.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Corporate History</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We were incorporated in
the State of Nevada on April 9, 2012, as Phalanx, Inc. We changed our name to ToughBuilt Industries, Inc. on December 29, 2015.
On September 18, 2018, we effected a 1-for-2 reverse stock split of our common stock. We consummated our initial public offering
pursuant to a registration statement on Form S-1 (File No: 333- 22610) declared effective by the SEC on November 8, 2018 and became
an Exchange Act reporting company pursuant to a Form 8-A (File No. 001-38739) on November 8, 2018. On April 15, 2020, we effected
a 1-for-10 reverse stock split of our outstanding common stock. On April 25, 2022, we effected a 1-for-150 reverse stock split
of our outstanding common stock. All share amounts and dollar amounts have been adjusted for the reverse stock splits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Business Developments</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The following highlights
material business developments in our business during the fiscal year ended December 31, 2021 and during the first quarter ended
March 31, 2022:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%">&bull;</TD>
    <TD STYLE="width: 94%">On February 17, 2021, we announced that we have grown our business from four stock keeping units
    (SKUs) to 25 SKUs with Toolstation, a Netherlands based company with over 60 stores in the Netherlands, Belgium and
    Luxembourg and one of the highly respected single-source suppliers of tools, accessories, and building products for
    professionals and serious do-it-yourselfers. These SKUs include current ranges of ToughBuilt&rsquo;s steel sawhorse line,
    soft-sided tool storage, and kneepads and have been slotted for immediate placement in all stores and in Toolstation&rsquo;s
    catalog;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

</DIV>

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


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

<DIV STYLE="border: Black 1pt solid; padding: 3pt">

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%">&bull;</TD>
    <TD STYLE="width: 94%">In November 2021, we launched two new product lines, ToughBuilt lasers and levels, and fully integrated with our mobile application, ToughBuilt Connect, allowing professional and DIY builders to quickly measure rooms, seamlessly upload information to a smartphone, and create shareable information with the touch of a button;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD>In December 2021, we launched a new product line, the ToughBuilt Workbench, available for purchase across our strategic global partners and buying groups servicing over 14,400 stores worldwide;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD>In August 2021, we launched a new product line, the ToughBuilt utility knives;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD>In September 2021, we launched ToughBuilt Brazil;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2021, our total revenues, net of allowances,
        totaled approximately $70.0 million as compared to approximately $39.4 million in 2020, including a 71% increase in online sales
        through Amazon.com from $7 million for 2020 to $12 million for 2021; and</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD>Since the beginning of 2021, we have raised a total of approximately $87.5 million in net proceeds in registered equity offerings.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B></B></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our Products</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">TOUGHBUILT&reg; manufactures
and distributes an array of high-quality and rugged toolbelts, tool bags, and other personal tool organizer products. We also manufacture
and distribute a complete line of knee pads for various construction applications, and a variety of metal goods, including utility
knives, aviation snips, shears, and digital measures such as lasers and levels. Our line of job site tools and material support
products consists of a full line of miter saw and table saw stands, sawhorses/job site tables, roller stands, and workbench. All
of our products are designed and engineered in the United States and manufactured in China, India, and the Philippines under our
quality control supervision. We do not need government approval for any of our products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Soft Goods</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The flagship of the product
line is the soft goods line that consists of over 100 variations of tool pouches, tool rigs, toolbelts and accessories, tool bags,
totes, a variety of storage solutions, and office organizers/bags for laptop/tablet/cellphones, etc. Management believes that the
breadth of the line is one of the deepest in the industry and has specialized designs to suit professionals from all sectors of
the industry including plumbers, electricians, framers, builders, and more.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We have a selection of
over 10 models of kneepads, some with unique patented design features that allow the users to interchange components
to suit particular conditions of use. Management believes that these kneepads are among the best performing kneepads in the industry.
Our &ldquo;all terrain&rdquo; knee pad protection with snapshell technology is part of our interchangeable kneepad system which
helps to customize the job site needs. They are made with superior quality using multilevel layered construction, heavy-duty webbing,
and abrasion-resistant PVC rubber.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Metal Goods</P>

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Sawhorses and Work Support Products</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The second major category
consists of Sawhorses and Work Support products with unique designs targeted at the most discerning users
in the industry. The innovative designs and construction of the more than 15 products in this category have led to the sawhorses
becoming among the best sellers of the category everywhere they are sold. The newest additions in this category include several
stands and work support products that are quickly gaining recognition in the industry and are expected to position themselves in
the top tier products in a short time. Our sawhorse line, miter saw, table saw &amp; roller stands, and workbench are built to
very high standards. Our sawhorse/job site table is fast to set up, holds 2,400 pounds, has adjustable heights, is made of all-metal
construction, and has a compact design. We believe that these lines of products will become the standard in the construction
industry.</P>

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

</DIV>

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


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<DIV STYLE="border: Black 1pt solid; padding: 3pt">

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our Business Strategy</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our product strategy is
to develop product lines in a number of categories rather than focus on a single line of goods. We believe that this approach allows
for rapid growth, wider brand recognition, and may ultimately result in increased sales and profits within an accelerated time
period. We believe that building brand awareness of our current ToughBuilt lines of products will expand our share of the pertinent
markets. Our business strategy includes the following key elements:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%">&bull;</TD>
    <TD STYLE="width: 94%; text-align: justify">A commitment to technological innovation achieved through consumer insight, creativity, and speed to market;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD STYLE="text-align: justify">A broad selection of products in both brand and private labels;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD STYLE="text-align: justify">Prompt response;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD STYLE="text-align: justify">Superior customer service; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD STYLE="text-align: justify">Value pricing.</TD></TR>
</TABLE>
<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; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We will continue to consider
other market opportunities while focusing on our customers&rsquo; specific requirements to increase sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.9pt">In addition to the
construction market, our products are marketed to the &ldquo;Do-It-Yourself&rdquo; and home improvement marketplace. The U.S.
housing stock of more than 130 million homes requires regular investment merely to offset normal depreciation. According to Statista.com<SUP>1</SUP>,
in recent years, the&nbsp;U.S. home improvement industry has witnessed steady growth, and the trend is expected to continue in
the near future. A significant increase occurred in 2020, mostly due to the outbreak of the coronavirus (COVID-19) pandemic and
the lockdowns which ensued, leading people to stay home more often than before and take up hobbies and projects such as DIY home
improvement. According to a Joint Center for Housing Studies forecast,&nbsp;homeowner improvements and repair expenditures were
expected to reach roughly 370 billion U.S. dollars&nbsp;in the first quarter of 2022. Aside from the pandemic<SUP>2</SUP>, the
rising real estate prices in many Western countries were a likely contributing factor to the increase in home improvement projects.
With&nbsp;real estate price changes outperforming wage increases, homeowners may have opted for upgrading their homes instead
of purchasing a new house.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">TOUGHBUILT&reg; products
are available worldwide in many major retailers ranging from home improvement and construction products and services stores to
major online outlets. Currently, we have placements in Lowes, Home Depot, Menards, Bunnings (Australia), Princess Auto (Canada),
Dong Shin Tool PIA (S. Korea) as well as seeking to grow our sales in global markets such as Western and Central Europe, Eastern
Europe, South America, and the Middle East.</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <SUP>1</SUP> &ldquo;Home Depot and Lowe's: average amount spent by consumers 2011-2021&rdquo;; published by C. Simionato (April 26, 2022); https://www.statista.com/statistics/240861/average-amount-spent-by-consumers-at-the-home-depot-and-lowes/</P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <SUP>2</SUP> &ldquo;Home improvement projects - statistics &amp; facts&rdquo;; published by&nbsp;C. Simionato; (Jan 12, 2022); https<FONT STYLE="background-color: white">://www.statista.com/topics/7899/home-improvement-projects/#topicHeader__wrapper</FONT></P>



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<DIV STYLE="border: Black 1pt solid; padding: 3pt">

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Retailers by region include:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%">&bull;</TD>
    <TD STYLE="width: 94%; text-align: justify">United States: Lowe&rsquo;s, Home Depot, Menards, GM products, Fire Safety, Hartville Hardware, ORR, Pooley, YOW, Wesco, Buzzi, and Western Pacific Building Materials.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD STYLE="text-align: justify">Canada: Princess Auto.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD STYLE="text-align: justify">United Kingdom: Toolbank (distribution throughout the UK and online selling for Europe).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD STYLE="text-align: justify">Australia: Kincrome, and Bunnings.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD STYLE="text-align: justify">New Zealand: Kincrome, and Bunnings.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD STYLE="text-align: justify">Russia: VSEInstrumenti.ru.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD STYLE="text-align: justify">South Korea: Dong Shin Tool PIA Co., Ltd.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We are actively expanding
into markets in Mexico and other Latin American countries, the Middle East, and South Africa.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We are currently in product
line reviews and discussions with Home Depot Canada, Do It Best, True Value, and other major retailers both domestically and internationally.
A product line review requires the supplier to submit a comprehensive proposal that includes product offerings, prices, competitive
market studies, relevant industry trends, and other information. Management anticipates, within the near term, adding to its customer
base up to three major retailers, along with several distributors and private retailers within six sectors and among fifty-six
targeted countries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

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

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Tools</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">In 2021, we launched the
following product lines:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD>Lasers;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD>Levels;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px">&bull;</TD>
    <TD>Utility knives; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD>Workbench.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mobile Device Products</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Since 2013, we have been
planning, designing, engineering, and sourcing the development of a new line of ToughBuilt mobile devices and accessories to be
used in the construction industry and by building enthusiasts. We are planning to have our mobile device products ready to market
in 2024 at which time we intend to commence marketing and selling our mobile device products to our current global customer base.
We believe that an increasing number of companies in the construction industry are requiring their employees to utilize mobile
devices not just to communicate with others but to utilize the special apps that will allow the construction workers to do their
job better and more efficiently. All of our mobile devices are designed and built in accordance with IP-68 and to a military standard
level of durability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our ruggedized mobile
line of products was created to place customized technology and wide varieties of data in the palm of building professionals and
enthusiasts such as contractors, subcontractors, foremen, general laborers, and others. We are designing the devices, accessories,
and custom apps to allow the users to plan with confidence, organize faster, find labor and products faster, estimate accurately,
purchase wisely, protect themselves, workers, and their business, create and track invoicing faster and easier.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Commencing in 2024, we
intend to launch the following accessories: car charger, QI charger, car mounts, and earbud pack, and we will focus on sales in
the following industries: construction, industrial, military, and law enforcement and &ldquo;dotcoms.&rdquo; In late 2024, we intend
to launch our T.55 rugged mobile phones and earbud headphones, as well as a &ldquo;T-Dock,&rdquo; attachable battery, tri lens
camera, and tough shield cover and accessories.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">In late 2024, we also
intend to launch applications for our mobile phones relating to the following topics:</P>

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

</DIV>


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<DIV STYLE="border: Black 1pt solid; padding: 3pt">

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34px">&nbsp;</TD>
    <TD STYLE="width: 34px">1.</TD>
    <TD>National building codes</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>2.</TD>
    <TD>Inspection booking</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>3.</TD>
    <TD>Labor ready</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>4.</TD>
    <TD>Estimating apps &amp; programs</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>5.</TD>
    <TD>Structural engineers</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>6.</TD>
    <TD>Architects</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>7.</TD>
    <TD>Building plans</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>8.</TD>
    <TD>Workers comp</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>9.</TD>
    <TD>Equipment insurance</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>10.</TD>
    <TD>Project insurance &amp; bonds</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>11.</TD>
    <TD>Vehicle insurance</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>12.</TD>
    <TD>Liability insurance</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>13.</TD>
    <TD>Umbrella insurance</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>14.</TD>
    <TD>Collection agencies</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>15.</TD>
    <TD>Construction loans</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>16.</TD>
    <TD>Small business loans</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>17.</TD>
    <TD>Job listings</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>18.</TD>
    <TD>Tool exchange</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Intellectual Property</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We hold several
patents and trademarks of various durations and believe that we hold or have applied for, or license all of the patent,
trademark, and other intellectual property rights necessary to conduct our business. We utilize trademarks (licensed and
owned) on nearly all of our products and believe having distinctive marks that are readily identifiable is an important
factor in creating a market for our goods, in identifying our brands and our Company, and in distinguishing our goods from
the goods of others. We consider our ToughBuilt<SUP>&reg;</SUP>, Cliptech<SUP>&reg;</SUP>, and Fearless<SUP>&reg; </SUP>trademarks
to be among our most valuable intangible assets. Trademarks registered both in and outside the U.S. are generally valid for
10 years, depending on the jurisdiction, and are generally subject to an indefinite number of renewals for a like period on
appropriate application.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">In 2019, the United States
Patent and Trademark Office (USPTO) granted two new design patents (U.S. D840,961 S and US D841,635 S) that cover ToughBuilt&rsquo;s
ruggedized mobile devices, which are valid for a period of 15 years. We also have several patents pending with the USPTO and anticipate
three or four of them to be granted in the near future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Implications of Being an Emerging Growth
Company and a Smaller Reporting Company</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We are an &ldquo;emerging
growth company,&rdquo; as defined in the JOBS Act. We will remain an emerging growth company until the earlier of (i) the last
day of the fiscal year following the fifth anniversary of the date of the first sale of our common stock pursuant to an effective
registration statement under the Securities Act; (ii) the last day of the fiscal year in which we have total annual gross revenues
of $1.07 billion or more; (iii) the date on which we have issued more than $1 billion in nonconvertible debt during the previous
three years; or (iv) the date on which we are deemed to be a large accelerated filer under applicable SEC rules. We expect that
we will remain an emerging growth company for the foreseeable future but cannot retain our emerging growth company status indefinitely
and will no longer qualify as an emerging growth company on or before the last day of the fiscal year following the fifth anniversary
of the date of the first sale of our common stock pursuant to an effective registration statement under the Securities Act. For
so long as we remain an emerging growth company, we are permitted and intend to rely on exemptions from specified disclosure requirements
that are applicable to other public companies that are not emerging growth companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

</DIV>


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<DIV STYLE="border: Black 1pt solid; padding: 3pt">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">These exemptions include:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%">&bull;</TD>
    <TD STYLE="width: 94%">being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations&rdquo; disclosure;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD>not being required to comply with the requirement of auditor attestation of our internal controls over financial reporting;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD>not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor&rsquo;s report providing additional information about the audit and the financial statements;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD>reduced disclosure obligations regarding executive compensation; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&bull;</TD>
    <TD>not being required to hold a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">An emerging growth company
can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new
or revised accounting standards. This allows an emerging growth company to delay the adoption of certain accounting standards until
those standards would otherwise apply to private companies. We have irrevocably elected to avail ourselves of this extended transition
period and, as a result, we will not be required to adopt new or revised accounting standards on the dates on which adoption of
such standards is required for other public reporting companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We are also a &ldquo;smaller
reporting company&rdquo; as defined in Rule 12b-2 of the Exchange Act and have elected to take advantage of certain of the scaled
disclosure available for smaller reporting companies. We will remain a smaller reporting company until the end of the fiscal year
in which (i) we have a public common equity float of more than $250&nbsp;million, or (ii) we have annual revenues for the most
recently completed fiscal year of more than $100&nbsp;million and a public common equity float or public float of more than $700&nbsp;million.
We also would not be eligible for status as a smaller reporting company if we become an investment company, an asset-backed issuer
or a majority-owned subsidiary of a parent company that is not a smaller reporting company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We have elected to take
advantage of certain of the reduced disclosure obligations in the registration statement of which this prospectus is a part and
may elect to take advantage of other reduced reporting requirements in future filings. As a result, the information that we provide
to our stockholders may be different from what you might receive from other public reporting companies in which you hold equity
interests.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our website address is
<I>www.toughbuilt.com</I>. Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, any amendments
to those reports, proxy and registration statements filed or furnished with the SEC, are available free of charge through our website.
We make these materials available through our website as soon as reasonably practicable after we electronically file such materials
with, or furnish such materials to, the SEC. The reports filed with the SEC by our executive officers and directors pursuant to
Section 16 under the Exchange Act are also made available, free of charge on our website, as soon as reasonably practicable after
copies of those filings are provided to us by those persons. These materials can be accessed through the &ldquo;Investor Relations&rdquo;
section of our website. The information contained in, or that can be accessed through, our website is not part of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our business is subject
to a number of risks. You should be aware of these risks before making an investment decision. These risks are discussed more fully
in the section titled &ldquo;<I>Risk Factors</I>&rdquo; included those set forth under &ldquo;Risk Factors&rdquo; starting on page
15 of this prospectus And other risk factors discussed under Item 1A. Risk Factors of our 2021 Form 10-K filed with the SEC on
April 18, 2022 and incorporated by reference herein. Risks include, but are not limited to, the following:</P>

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

</DIV>


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<DIV STYLE="border: Black 1pt solid; padding: 3pt">

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px; text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">Our audited 2021 financial statements have been prepared on a going-concern basis and our continued operations are in doubt;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">We will require additional capital in order to achieve commercial success and, if necessary, to finance future losses from operations as we endeavor to build revenue, but we do not have any commitments to obtain such capital and we cannot assure you that we will be able to obtain adequate capital as and when required;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">If the hosts of third-party marketplaces limit our access to such marketplaces, our operations and financial results will be adversely affected;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">We are highly dependent upon manufacturers in China, India, and the Philippines and an interruption in such relationships or our ability to obtain products from them could adversely affect our business and results of operations;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">Our financial condition and results of operations for the fiscal year 2022 may be adversely affected by the coronavirus outbreak;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">The increase in commodity prices such as fuel, plastic, and metal could negatively impact our profit margins;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">The Company&rsquo;s results of operations could be negatively impacted by inflationary or deflationary economic conditions which could affect the ability to obtain goods from our suppliers in a timely and cost-effective manner;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">Product liability claims and other kinds of litigation could affect our business, reputation, financial condition, results of operations, and cash flows;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">Failure to comply with privacy laws and regulations and failure to adequately protect customer data could harm our business, damage our reputation and result in a loss of customers;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">If we are unable to protect our intellectual property rights, our reputation and brand could be impaired, and we could lose customers;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">Existing or future government regulation could expose us to liabilities and costly changes in our business operations and could reduce customer demand for our products and services;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">Geopolitical conditions, including trade disputes and direct or indirect acts of war or terrorism, could have an adverse effect on our operations and financial results;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">Our shares will be subject to potential delisting if we do not maintain the listing requirements of the Nasdaq Capital Market, including the $1.00 minimum closing bid requirement;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">As an &ldquo;emerging growth company&rdquo; and a &ldquo;smaller reporting company&rdquo; under applicable law, we will be subject to lessened disclosure requirements, which could leave our stockholders without information or rights available to stockholders of more mature companies;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">If research analysts do not publish research about our business or if they issue unfavorable commentary or downgrade our common stock, our stock price and trading volume could decline;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">We do not currently intend to pay dividends on our common stock in the foreseeable future, and consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">The security of our information technology systems may be compromised in the event of system failures, unauthorized access, cyberattacks, or a deficiency in our cybersecurity, and confidential information, including non-public personal information that we maintain, could be improperly disclosed.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

</DIV>


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

<DIV STYLE="border: Black 1pt solid; padding: 3pt">

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_003"></A>OFFERING SUMMARY</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-left: 0.25in; text-indent: -0.25in"><FONT STYLE="font-size: 10pt"><B>Units Offered by Us:</B></FONT></TD>
    <TD STYLE="width: 50%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Up to __________ units on a &ldquo;best efforts&rdquo; basis, each
        unit consisting of one share of common stock and one warrant to purchase one share of common stock, at a price of $ per unit.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Each warrant will have an exercise price of $ ____ per share, will
        be immediately exercisable, and will expire on the ____ anniversary of the original issuance date. This prospectus also relates
        to the offering of the shares of common stock issuable upon exercise of the warrants.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><FONT STYLE="font-size: 10pt"><B>Pre-Funded Units Offered by Us:</B></FONT></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We are also offering to those purchasers, if any, whose purchase
        of units in this offering would otherwise result in the purchaser, together with its affiliates and certain related parties, beneficially
        owning more than 4.99% (or, at the election of the purchaser, 9.99%) of our outstanding shares of common stock immediately following
        the consummation of this offering, the opportunity to purchase, if such purchasers so choose, pre-funded units (each pre-funded
        unit consisting of one pre-funded warrant to purchase one share of common stock and one warrant to purchase one share of common
        stock), in lieu of units that would otherwise result in any such purchaser&rsquo;s beneficial ownership exceeding 4.99% (or, at
        the election of the purchaser, 9.99%) of our outstanding shares of common stock.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in">The purchase price of each pre-funded
        unit will be equal to the price per unit being sold to the public in this offering, minus $0.0001, and the exercise price of each
        pre-funded warrant included in the pre-funded units will be $0.0001 per share. The pre-funded warrants included in the pre-funded
        units will be immediately exercisable and may be exercised at any time until all of the pre-funded warrants are exercised in full.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">For each pre-funded unit we sell, the number of units we are offering
        will be decreased on a one-for-one basis.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">This prospectus also relates to the offering of the shares of common
        stock issuable upon exercise of the pre-funded warrants.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><FONT STYLE="font-size: 10pt"><B>Common Stock Outstanding Before Offering:</B></FONT></TD>
    <TD><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt">____________ shares of common stock</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><FONT STYLE="font-size: 10pt"><B>Common Stock Outstanding After Offering:</B></FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">_____________ shares of common stock (assuming the sale of all units covered by this prospectus, no sale of pre-funded units, no exercise of any warrants issued in this offering (including the Placement Agent Warrants), and no exercise of outstanding warrants or outstanding options issued under our equity incentive plans. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

</DIV>


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

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

<DIV STYLE="border: Black 1pt solid; padding: 3pt">

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-left: 0.15in; text-indent: -0.15in"><FONT STYLE="font-size: 10pt"><B>Use of Proceeds:</B></FONT></TD>
    <TD STYLE="width: 50%"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt">We intend to use the net proceeds from this offering for general corporate purposes, including working capital. Because this is a best efforts offering with no minimum amount as a condition to closing, we may not sell all or any of the securities offered hereby. As a result, we may receive significantly less in net proceeds than we currently estimate. See &ldquo;<I>Use of Proceeds</I>&rdquo; in this prospectus.</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><FONT STYLE="font-size: 10pt"><B>Dividend Policy:</B></FONT></TD>
    <TD><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt">We have never declared or paid any cash dividends on our shares of common stock. We do not anticipate paying any cash dividends in the foreseeable future.</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><FONT STYLE="font-size: 10pt"><B>Risk Factors:</B></FONT></TD>
    <TD><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt">You should carefully consider the risk factors described in the section of this prospectus entitled &ldquo;Risk Factors,&rdquo; together with the risk factors disclosed under &ldquo;Item 1A. Risk Factors&rdquo; and other information included in this prospectus as well as in our 2021 Form 10-K and other materials filed and furnished with the SEC.</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><FONT STYLE="font-size: 10pt"><B>Nasdaq Capital Market Trading Symbol:</B></FONT></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Our shares of common stock are listed on the Nasdaq Capital Market
        under the symbol &ldquo;TBLT.&rdquo; We do not intend to list the warrants or the pre-funded warrants on any securities exchange
        or nationally recognized trading system.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">We also have Series A Warrants listed on the Nasdaq Capital Market
        under the symbol &ldquo;TBLTW.&rdquo; No Series A Warrants are being offered in this offering.</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Assumptions Used Throughout This Prospectus</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Unless otherwise stated
in this prospectus, the total number of shares of common stock outstanding as of the date of this prospectus and after this offering
is based on __________ shares outstanding as of __________ , 2022 (adjusted for the 1-for-150 reverse stock split on April 25,
2022), assumes the sale of units based on an assumed public offering price of $____, the last reported sales price of our shares of
common stock on the Nasdaq Capital Market on __________ , 2022, and excludes the following other securities as of March 31, 2022
(adjusted for the 1-for-150 reverse stock split on April 25, 2022):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; text-align: justify">&bull;</TD>
    <TD STYLE="width: 94%; text-align: justify">83,334 shares of common stock issuable upon the conversion of 2,500 shares of Series F Convertible Preferred Stock;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">83,334 shares of common stock issuable upon the conversion of 2,500 shares of Series G Convertible Preferred Stock;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;&nbsp;</TD>
    <TD STYLE="text-align: justify">281,832 shares of common stock issuable as of the date hereof upon the exercise of common
    stock outstanding warrants with a weighted average exercise price of $241 per share;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">83 shares of common stock available for future issuance under the Company 2016 Equity
    Incentive Plan;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">625 shares of common stock available for future issuance under the Company 2018 Equity Incentive Plan;</TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; width: 3%">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 3%"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 94%"><FONT STYLE="font-size: 10pt">1,354 shares of common stock issuable upon the exercise of outstanding stock options and RSUs; </FONT></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 3%">&bull;</TD>
    <TD STYLE="text-align: justify; width: 94%">125,000 shares of common stock issuable upon the exercise of the warrants
to the investors of the Series F Preferred Stock and Series G Preferred Stock for $37.65 per share;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">shares of common stock issuable upon warrant exercised pursuant to the
cashless Alternate Net Number mechanism contained in the warrant; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

</DIV>


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

<DIV STYLE="border: Black 1pt solid; padding: 3pt">

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; text-align: justify">&bull;</TD>
    <TD STYLE="width: 94%; text-align: justify">10,000 shares of common stock issuable upon the exercise of the placement agent warrants issued to the placement agent in our February 2022 direct offering for $37.50 per share.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Except as otherwise noted,
all information in this prospectus reflects and assumes (i) no sale of pre-funded units in this offering, which, if sold, would
reduce the number of units that we are offering on a one-for-one basis, (ii) no exercise of outstanding options issued under our
equity incentive plans and (iii) no exercise of any warrants issued in this offering (including the Placement Agent Warrants).</P>

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

</DIV>


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<DIV STYLE="border: Black 1pt solid; padding: 3pt">

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The following tables summarize
our financial data. We derived the summary financial statement data for the years ended December 31, 2021 and 2020 set forth below
from our audited financial statements and related notes contained in this prospectus. Our historical results are not necessarily
indicative of the results that may be expected in the future. You should read the information presented below together with &ldquo;<I>Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations</I>,&rdquo; our financial statements, the notes to those
statements and the other financial information contained in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Summary of Operations in U.S. Dollars</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; 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="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fiscal Year Ended<BR> December 31,</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2021</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 72%; text-align: left">Net Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">70,026,324</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">39,433,617</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><B>Cost of Goods Sold</B></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">50,912,513</P>
<P STYLE="margin: 0pt 0"></P></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><P STYLE="margin: 0pt 0">26,722,722</P></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">&nbsp;</TD><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">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">Selling, general and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(51,434,180</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(22,191,041</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">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">(6,980,453</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">(5,056,811</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">Operating loss</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">(39,300,822</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">(14,386,957</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><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">OTHER INCOME (LOSS)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,774,924</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,961,665</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><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: 2.5pt">NET LOSS</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">(37,525,898</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">(17,348,622</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><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">Loss per common share (basic and diluted)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.37</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.68</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Balance Sheet in U.S. Dollars</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></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">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">As of December 31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2021</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Actual</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Actual&#8239;</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 72%">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">7,472,224</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">2,194,850</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">Total Current Assets</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">64,870,205</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">24,296,037</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">Total Assets</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">78,954,525</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">27,490,694</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><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">Total Current Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21,058,002</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,144,641</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><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">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">21,058,002</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">8,144,641</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><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">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">156,171,483</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">80,103,653</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><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">Total Stockholders Equity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">57,896,523</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">19,346,053</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

</DIV>


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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_004"></A>RISK FACTORS</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white"><I>The
following is only a summary of the risks pertaining to our Company. Investment in our securities involves risks. You should carefully
consider the following risk factors in addition to other information contained in this prospectus as well as in our 2021 Form 10-K
and other materials filed with the SEC and incorporated by reference herein. The occurrence of any of the following risks might
cause you to lose all or part of your investment. Some statements in this prospectus, including statements in the following risk
factors, constitute&nbsp;</I></FONT><I>&ldquo;<FONT STYLE="background-color: white">forward-looking statements</FONT>.&rdquo;</I>
See &ldquo;<I>Incorporation of Certain Information by Reference</I>&rdquo; <I>in this prospectus. </I></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Risks Related to Our Company</P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our financial statements have been
prepared on a going-concern basis and our continued operations are in doubt.</P>

<P STYLE="font: italic bold 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; text-indent: 25.9pt">The Company has incurred
substantial operating losses since its inception. As reflected in the consolidated financial statements, the Company had an accumulated
deficit of approximately $98.3 million at December 31, 2021, a net loss of approximately $37.5 million for the year ended December
31, 2021, and approximately $66.2 million of net cash used in operating activities for the year ended December 31, 2021. The accompanying
consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and
satisfaction of liabilities in the normal course of business. The Company anticipates incurring additional losses until such time,
if ever, that it can obtain marketing approval to sell, and then generate significant sales, of its technology that is currently
in development. As such it is likely that additional financing will be needed by the Company to fund its operations and to develop
and commercialize its technology. These factors raise substantial doubt about the Company&rsquo;s ability to continue as a going
concern. Although the Company believes that the net proceeds from this offering will satisfy its capital needs for the next twelve
months, the Company will seek to obtain additional capital through the sale of debt or equity financings or other arrangements
to fund operations; however, there can be no assurance that the Company will be able to raise needed capital under acceptable terms,
if at all. The sale of additional equity may dilute investors and newly issued shares may contain senior rights and preferences
compared to currently outstanding shares of common stock. Issued debt securities may contain covenants and limit the Company&rsquo;s
ability to pay dividends or make other distributions to stockholders. If the Company is unable to obtain such additional financing,
future operations would need to be scaled back or discontinued. Due to the uncertainty in the Company&rsquo;s ability to raise
capital, management believes that there is substantial doubt in the Company&rsquo;s ability to continue as a going concern for
the next twelve months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We will require additional capital
in order to achieve commercial success and, if necessary, to finance future losses from operations as we endeavor to build revenue,
but we do not have any commitments to obtain such capital and we cannot assure you that we will be able to obtain adequate capital
as and when required.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We may not be able
to generate any profit in the foreseeable future. <FONT STYLE="background-color: white">For the year ended December 31, 2021,
we have a net loss of approximately $37.5 million compared to a net loss of approximately $17.3 million for the year ended
December 31, 2020. </FONT>Accordingly, there is no assurance that we will realize profits in fiscal 2022 or thereafter. If we
fail to generate profits from our operations, we will not be able to sustain our business. We may never report profitable
operations or generate sufficient revenue to maintain our Company as a going concern. We continue to control our cash
expenses as a percentage of expected revenue on an annual basis and thus may use our cash balances in the short term to
invest in revenue growth; however, we cannot give assurance that we can increase our cash balances or limit our cash
consumption and thus maintain sufficient cash balances for our planned operations. Future business demands may lead to cash
utilization at levels greater than recently experienced. We may need to raise additional capital in the future. However, we
cannot assure that we will be able to raise additional capital on acceptable terms, or at all. Our inability to generate
profits could have an adverse effect on our financial condition, results of operations, and cash flows. See
&ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations; Liquidity and Capital
Resources</I>.&rdquo;</P>

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


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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Risks Related to Ownership of Securities</P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">An investment in our securities
is speculative and there can be no assurance of any return on any such investment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">An investment in our securities
is speculative and there can be no assurance that investors will obtain any return on their investment. Investors may be subject
to substantial risks involved in an investment us, including the risk of losing their entire investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our shares will be subject to potential
delisting if we do not maintain the listing requirements of the Nasdaq Capital Market, including the $1.00 minimum closing bid
requirement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our failure to maintain
our listing and our common stock being de-listed from Nasdaq would make it more difficult for stockholders to dispose of their
common stock and more difficult to obtain accurate price quotations on our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">For example, on May 19,
2021, the Company received a written notice from the Listing Qualifications department of Nasdaq indicating that the Company was
not in compliance with Nasdaq Listing Rule 5550(a)(2), which requires a minimum closing bid price of $1.00 per share of the Company&rsquo;s
common stock (the &ldquo;Minimum Bid Price Requirement&rdquo;). The initial notice provided the Company 180 calendar days to regain
compliance with the Minimum Bid Price Requirement. On November 16, 2021, the Company received a written letter from the Listing
Qualifications department of Nasdaq notifying the Company that Nasdaq has granted the Company an additional 180 calendar days,
or until May 16, 2022, to regain compliance with the requirement for the Company&rsquo;s shares of common stock to maintain the
Minimum Bid Price Requirement. On April 25, 2022, we effected a reverse stock split of our common stock on a one-for-150 basis
as part of our plan to compliance with Nasdaq&rsquo;s Minimum Bid Price Requirement. On May 9, 2022, we were notified by
Nasdaq that we had regained compliance with Nasdaq&rsquo; Minimum Price Requirement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30.85pt">Failure to maintain our
Nasdaq listing could negatively impact us and our stockholders by reducing the willingness of investors to hold our common stock
because of the resulting decreased price, liquidity and trading of our common stock, limited availability of price quotations,
and reduced news and analyst coverage. These developments may also require brokers trading in our common stock to adhere to more
stringent rules and may limit our ability to raise capital by issuing additional shares in the future. Delisting may adversely
impact the perception of our financial condition and cause reputational harm with investors and parties conducting business with
us. Additionally, if we are subject to delisting from Nasdaq, there can be no assurance that we would be able to list our common
stock on another exchange in a timely fashion, if at all.</P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This is a best efforts offering,
no minimum amount of securities is required to be sold, and we may not raise the amount of capital we believe is required for our
business plans.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;The Placement Agent
has agreed to use its reasonable best efforts to solicit offers to purchase the units and pre-funded units in this offering. The
Placement Agent has no obligation to buy any of the securities from us or to arrange for the purchase or sale of any specific number
or dollar amount of the securities. There is no required minimum number of securities or amount of proceeds that must be sold as
a condition to completion of this offering. Because there is no minimum number of securities or amount of proceeds required as
a condition to the closing of this offering, the actual offering amount, Placement Agent fees and proceeds to us are not presently
determinable and may be substantially less than the maximum amounts set forth above. We may sell fewer than all of the securities
offered hereby, which may significantly reduce the amount of proceeds received by us, and investors in this offering will not receive
a refund in the event that we do not sell all of the units offered in this offering. Thus, we may not raise the amount of capital
we believe is required for our operations in the short-term and may need to raise additional funds, which may not be available
or available on terms acceptable to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Investors in this offering will
experience immediate and substantial dilution in net tangible book value.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">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
&ldquo;<I>Dilution</I>&rdquo; for a more complete description of how the value of your investment will be diluted upon the completion
of this offering.</P>

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


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Immediately prior to the
consummation of this offering, there was an outstanding warrant held by an investor exercisable 65,942 shares of common stock (&ldquo;Warrant
Shares&rdquo;) (subject to a beneficial ownership limitations) for $7.50 per share until April 19, 2024. The warrant also provides
for cashless exercise at investor&rsquo;s option based on the average VWAP of the common stock the twenty (20) trading days immediately
prior to the time of exercise. Also, the investor may, in its sole discretion, elect instead to receive upon such exercise a number
of shares of common stock equal to the &ldquo;Alternate&nbsp;Net&nbsp;Number,&rdquo; defined in the warrant as being equal to 200%
of the difference of (i) the quotient of (A) the product of (I) such aggregate number of Warrant Shares to be exercised hereunder
pursuant to such exercise notice and (II) $150.00 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations
or other similar events), divided by (B) the Market Price, less (ii) such aggregate number of Warrant Shares to be exercised hereunder
pursuant to such Exercise Notice.&nbsp;The term &ldquo;Market Price&rdquo; is defined in the warrant as the higher of (i) $0.264
and (ii) the lower of (1) the closing bid price of the common stock on the trading day immediately prior to such date and (2) the
VWAP of the Common Stock on the trading day immediately prior to such date. As a result of the Alternate Net Number, the investor
is able to purchase substantially more shares of common stock than the investor would otherwise be able to acquire through a cash
or cashless exercise. To the extent that the warrant is exercised its Alternate Net Number mechanism, the purchasers of the shares
sold in this offering will experience further dilution. Our stock price has been, and may continue to be, volatile.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">The market price of
our common stock has been, and is expected to be, subject to significant volatility. The value of our common stock may decline
regardless of our operating performance or prospects. Factors affecting our market price include, but are not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 3%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%; text-align: justify">&bull;</TD>
    <TD STYLE="vertical-align: top; width: 94%; text-align: justify">the ongoing impacts of the COVID-19 pandemic and resulting impact on stock market performance;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&bull;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">fluctuations in our financial results or outlook, or those of companies perceived to be similar to us;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&bull;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">changes in the prices of commodities associated with our business;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&bull;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">changes in our capital structure, such as future issuances of securities or the incurrence of debt;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&bull;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">the relatively small number of outstanding shares of common stock resulting from the 1-for-150 reverse stock split effective on April 25, 2022; </TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&bull;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">announcements by us or our competitors of significant contracts, acquisitions or strategic partnerships;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&bull;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">regulatory developments;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&bull;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">litigation involving us or our general industry;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&bull;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">additions or departures of key personnel; </TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&bull;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">changes in general economy, industry and market conditions; and</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&bull;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">prolonged disruptions in the global supply chain; </TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&bull;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">if we fail to maintain the listing of our common stock with a U.S. national securities exchange, the liquidity of our common stock could be adversely affected.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">Recent events have
caused stock prices for many companies, including ours, to fluctuate in ways unrelated or disproportionate to their operating performance.
The general economic, political and stock market conditions that may affect the market price of our common stock are beyond our
control. The market price of our common stock at any particular time may not remain the market price in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Furthermore, stock markets
have experienced price and volume fluctuations that have affected, and continue to affect, the market prices of equity securities
of many companies. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies.
These broad market fluctuations, as well as general economic, political and market conditions, such as recessions, interest rate
changes and international currency fluctuations, may negatively affect the market price of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Additionally, the global
economy and financial markets may be adversely affected by geopolitical events, including the current or anticipated impact of
military conflict and related sanctions imposed on Russia by the United States and other countries due to Russia&rsquo;s recent
invasion of Ukraine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">In the past, many companies
that have experienced volatility and sustained declines in the market price of their stock have become subject to securities class
action and derivative action litigation. Securities litigation against us could result in substantial costs and divert our management&rsquo;s
attention from other business concerns, which could materially harm our business. Any insurance we maintain may not provide adequate
coverage against potential losses from such securities litigation, and if claims or losses exceed our liability insurance coverage,
our business would be adversely impacted. In addition, insurance coverage may become more expensive, which would harm our financial
condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The warrants are speculative in
nature.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The warrants offered in
this offering do not confer any rights of common stock ownership on their holders, such as voting rights or the right to receive
dividends, except as set forth in the warrants, but rather merely represent the right to acquire shares of our common stock at
a fixed price for a limited period of time. Warrants not exercised prior to their expiration date will expire and have no further
value after the expiration date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>The warrants may not have any value.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">There can be no assurance
that the market price of our shares of common stock will ever equal or exceed the exercise price of the warrants. In the event
that the stock price of our shares of common stock does not exceed the exercise price of the warrants during the period when the
warrants are exercisable, such warrants may not have any value.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>There is no public market for the
warrants to purchase shares of our common stock being offered by us in this offering.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">There is no established
public trading market for the warrants being offered in this offering, and we do not expect a market to develop. In addition, we
do not intend to apply to list the warrants on any national securities exchange or other nationally recognized trading system,
including the Nasdaq Capital Market. Without an active market, the liquidity of the warrants will be limited.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">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.</P>

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


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    <!-- Field: /Page -->

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The requirements of being a public
company may strain our resources, divert management&rsquo;s attention and affect our results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">As a public company in
the United States, we face increased legal, accounting, administrative, and other costs and expenses. We are subject to the reporting
requirements of the Exchange Act and the Sarbanes-Oxley Act of 2002 (the &ldquo;Sarbanes-Oxley Act&rdquo;). The Exchange Act requires,
among other things, that we file annual, quarterly, and current reports with respect to our business and financial condition. The
Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal control
over financial reporting. For example, Section 404 of the Sarbanes-Oxley Act (&ldquo;Section 404&rdquo;) requires that our management
report on the effectiveness of our internal controls structure and procedures for financial reporting. Section 404 compliance may
divert internal resources and will take a significant amount of time and effort to complete. If we fail to maintain compliance
under Section 404, or if in the future management determines that our internal control over financial reporting is not effective
as defined under Section 404, we could be subject to sanctions or investigations by Nasdaq, the SEC, or other regulatory authorities.
Furthermore, investor perceptions of our Company may suffer, and this could cause a decline in the market price of our common stock.
Any failure of our internal control over financial reporting could have a material adverse effect on our stated results of operations
and harm our reputation. If we are unable to implement these changes effectively or efficiently, it could harm our operations,
financial reporting or financial results and could result in an adverse opinion on internal controls from our independent auditors.
We may need to hire a number of additional employees with public accounting and disclosure experience in order to meet our ongoing
obligations as a public company, particularly if we become fully subject to Section 404 and its auditor attestation requirements,
which will increase costs. We expect these rules and regulations to increase our legal and financial compliance costs and to make
some activities more time consuming and costly, although we are currently unable to estimate these costs with any degree of certainty.
A number of those requirements will require us to carry out activities we have not done previously. Our management team and other
personnel will need to devote a substantial amount of time to new compliance initiatives and to meeting the obligations that are
associated with being a public company, which may divert attention from other business concerns, which could have a material adverse
effect on our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Additionally, the expenses
incurred by public companies generally for reporting and corporate governance purposes have been increasing. These increased costs
will require us to divert a significant amount of money that we could otherwise use to develop our business. If we are unable to
satisfy our obligations as a public company, we could be subject to delisting of our common stock, fines, sanctions, and other
regulatory action, and potentially civil litigation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">New laws, regulations, and standards
relating to corporate governance and public disclosure may create uncertainty for public companies, increasing legal and financial
compliance costs and making some activities more time consuming.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">These laws, regulations,
and standards are subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, may evolve
over time as new guidance is provided by the courts and other bodies. This could result in continuing uncertainty regarding compliance
matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. If our efforts to comply with
new laws, regulations, and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related
to their application and practice, regulatory authorities may initiate legal proceedings against us, and our business may be adversely
affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">As a public company subject
to these rules and regulations, we may find it more expensive for us to obtain director and officer liability insurance, and we
may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These factors could also make
it more difficult in the future for us to attract and retain qualified members of our Board and qualified executive officers.</P>

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


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

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are an &ldquo;emerging growth
company&rdquo; and a &ldquo;smaller reporting company&rdquo; under the JOBS Act, and we cannot be certain if the reduced disclosure
requirements applicable to emerging growth companies and smaller reporting companies will make our common stock less attractive
to investors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We are an &ldquo;emerging
growth company&rdquo; and a &ldquo;smaller reporting company&rdquo; as defined in the JOBS Act, and we have elected to take advantage
of certain exemptions from various reporting requirements that are applicable to other public companies that are not &ldquo;emerging
growth companies&rdquo; and &ldquo;smaller reporting companies&rdquo; including, but not limited to:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 3%; text-align: justify">&bull;</TD>
    <TD STYLE="width: 94%; text-align: justify">not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial statements disclosure;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">taking advantage of an extension of time to comply with new or revised financial accounting standards;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration statements; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved; and </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. </TD></TR>
</TABLE>
<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: 0; text-align: justify; text-indent: 25.9pt">We will remain an &ldquo;emerging
growth company&rdquo; until the last day of the fiscal year following the fifth anniversary of the date of the first sale of our
common stock pursuant to an effective registration statement under the Securities Act, although we will lose that status sooner
if our revenues exceed $1.07 billion, if we issue more than $1 billion in non-convertible debt in a three year period, or if the
market value of our common stock that is held by non-affiliates exceeds $700 million as of the last day of our most recently completed
second fiscal quarter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We may continue to be
a smaller reporting company even after we are no longer an emerging growth company. We may take advantage of certain of the scaled
disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long
as (i) the market value of our common stock held by non-affiliates is equal to or less than $250 million as of the last business
day of the most recently completed second fiscal quarter, and (ii) our annual revenues is equal to or less than $100 million during
the most recently completed fiscal year and the market value of our common stock held by non-affiliates is equal to or less than
$700 million as of the last business day of the most recently completed second fiscal quarter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We cannot predict if investors
will find our common stock less attractive because we rely on these exemptions. If some investors find our common stock less attractive
as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.&nbsp;In addition,
taking advantage of reduced disclosure obligations may make comparison of our financial statements with other public companies
difficult or impossible. If investors are unable to compare our business with other companies in our industry, we may not be able
to raise additional capital as and when we need it, which may materially and adversely affect our financial condition and results
of operations.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If research analysts do not publish
research about our business or if they issue unfavorable commentary or downgrade our common stock, our stock price and trading
volume could decline.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The trading market for
our securities may depend in part on the research and reports that research analysts publish about us and our business. If we do
not maintain adequate research coverage, or if any of the analysts who cover us downgrade our stock or publish inaccurate or unfavorable
research about our business, the price of our common stock could decline. If one or more of our research analysts ceases to cover
our business or fails to publish reports on us regularly, demand for our securities could decrease, which could cause the price
of our common stock or trading volume to decline.</P>

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


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

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We do not currently intend to pay
dividends on our common stock in the foreseeable future, and consequently, your ability to achieve a return on your investment
will depend on appreciation in the price of our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We have never declared
or paid cash dividends on our common stock and do not anticipate paying any cash dividends to holders of our common stock in the
foreseeable future. Consequently, investors must rely on sales of their common stock after price appreciation, which may never
occur, as the only way to realize any future gains on their investments. There is no guarantee that shares of our common stock
will appreciate in value or even maintain the price at which our stockholders have purchased their shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Anti-takeover provisions in our
charter documents and Nevada law could discourage delay or prevent a change of control of our Company and may affect the trading
price of our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We are a Nevada corporation
and the anti-takeover provisions of the Nevada Control Shares Acquisition Act may discourage, delay, or prevent a change of control
by limiting the voting rights of control shares acquired in a control share acquisition. In addition, our Articles of Incorporation
and Amended and Restated Bylaws (&ldquo;Bylaws&rdquo;) may discourage, delay or prevent a change in our management or control over
us that stockholders may consider favorable. Among other things, our Articles of Incorporation and Bylaws:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px; text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">authorize the issuance of &ldquo;blank check&rdquo; preferred stock that could be issued by our Board in response to a takeover attempt;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">provide that vacancies on our Board, including newly created directorships, may be filled only by a majority vote of directors then in office, except a vacancy occurring by reason of the removal of a director without cause shall be filled by vote of the stockholders; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&bull;</TD>
    <TD STYLE="text-align: justify">limit who may call special meetings of stockholders.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">These provisions could
have the effect of delaying or preventing a change of control, whether or not it is desired by, or beneficial to, our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have agreed to indemnify our
officers and directors against lawsuits to the fullest extent of the law.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Nevada law permits the
indemnification of officers and directors against expenses incurred in successfully defending against a claim. Nevada law also
authorizes Nevada corporations to indemnify their officers and directors against expenses and liabilities incurred because of their
being or having been an officer or director. Our organizational documents provide for this indemnification to the fullest extent
permitted by Nevada law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Prior to, and in no event
not later than, the closing of the offering, we will obtain director and officer liability insurance to cover liabilities our directors
and officers may incur in connection with their services to us. There is no guarantee that such insurance coverage will protect
us from any damages or loss claims filed against it.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Insofar as indemnification
for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers or persons controlling the Company
pursuant to provisions of the State of Nevada, the Company has been informed that, in the opinion of the Securities and Exchange
Commission, such indemnification is against public policy as expressed in that Act and is, therefore, unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We may need, but be unable, to
obtain additional funding on satisfactory terms, which could dilute our stockholders or impose burdensome financial restrictions
on our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We have relied upon cash
from financing activities and in the future, we hope to rely on revenues generated from operations to fund the cash requirements
of our activities. However, there can be no assurance that we will be able to generate any significant cash from our operating
activities in the future. Future financing may not be available on a timely basis, in sufficient amounts or on terms acceptable
to us, if at all. Any debt financing or other financing of securities senior to the common stock will likely include financial
and other covenants that will restrict our flexibility. Any failure to comply with these covenants would have a material adverse
effect on our business, prospects, financial condition, and results of operations because we could lose our existing sources of
funding and impair our ability to secure new sources of funding.</P>

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


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B><I>There is no public market for the
warrants to purchase shares of our common stock being offered by us in this offering.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">There is no established
public trading market for the warrants being offered in this offering, and we do not expect a market to develop. In addition, we
do not intend to apply to list the warrants on any national securities exchange or other nationally recognized trading system,
including the Nasdaq Capital Market. Without an active market, the liquidity of the warrants will be limited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>IN ADDITION TO THE ABOVE RISKS, BUSINESSES
ARE OFTEN SUBJECT TO RISKS NOT FORESEEN OR FULLY APPRECIATED BY MANAGEMENT. IN REVIEWING THIS FILING, POTENTIAL INVESTORS SHOULD
KEEP IN MIND THAT OTHER POSSIBLE RISKS MAY ADVERSELY IMPACT THE COMPANY&rsquo;S BUSINESS OPERATIONS AND THE VALUE OF THE COMPANY&rsquo;S
SECURITIES.</B></P>

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


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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_005"></A>USE OF PROCEEDS</P>

<P STYLE="font: bold 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: justify; text-indent: 30.85pt"><FONT STYLE="font-size: 10pt">We
estimate the net proceeds from this offering will be approximately $</FONT>__________ <FONT STYLE="font-size: 10pt">million, after
deducting Placement Agent fees and estimated offering expenses payable by us as described in &ldquo;Plan of Distribution&rdquo;
and excluding the proceeds, if any, from the exercise of the warrants sold in this offering. However, this is a best efforts offering
with no minimum number of securities or amount of proceeds as a condition to closing, and we may not sell all or any of these units
or pre-funded units offered pursuant to this prospectus; as a result, we may receive significantly less in net proceeds.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30.85pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30.85pt">We intend to use the
net proceeds from this offering for&nbsp;general corporate purposes, including working capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The use of the proceeds
represents management&rsquo;s estimates based upon current business and economic conditions. We reserve the right to use the net
proceeds we receive in the offering in any manner we consider to be appropriate. Although we do not contemplate changes in the
proposed use of proceeds, to the extent we find that adjustment is required for other uses by reason of existing business conditions,
the use of proceeds may be adjusted. The actual use of the proceeds of this offering could differ materially from those outlined
above as a result of several factors including those set forth under &ldquo;<I>Risk Factors</I>&rdquo; and elsewhere in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The foregoing information
is an estimate based on our current business plan. Pending our use of the net proceeds from this offering, we intend to invest
the net proceeds in a variety of capital preservation investments, including short-term, investment-grade, interest-bearing instruments,
and U.S. government securities. We anticipate that the proceeds from this offering will enable us to further grow the business
and increase cash flows from operations, although there can be no assurance that will achieve such growth.&nbsp;</P>

<P STYLE="font: bold 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: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_007"></A>DIVIDEND POLICY</P>

<P STYLE="font: bold 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: justify; text-indent: 25.9pt">We have not declared any
cash dividends since inception, and we do not anticipate paying any dividends in the foreseeable future. Instead, we anticipate
that all of our earnings will be used to provide working capital, to support our operations, and to finance the growth and development
of our business. The payment of dividends is within the discretion of the Board and will depend on our earnings, capital requirements,
financial condition, prospects, applicable Nevada law, which provides that dividends are only payable out of surplus or current
net profits, and other factors our Board might deem relevant. There are no restrictions that currently limit our ability to pay
dividends on our common stock other than those generally imposed by applicable state law.</P>

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


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    <!-- Field: /Page -->

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_008"></A>CAPITALIZATION</P>

<P STYLE="font: bold 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: justify; text-indent: 25.9pt">The following table sets
forth our consolidated cash and capitalization, as of December 31, 2021. Such information is set forth on the following basis:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%">&bull;</TD>
    <TD STYLE="width: 94%; padding-left: 3.75pt">on an actual basis; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%">&bull;</TD>
    <TD STYLE="width: 94%; padding-left: 3.75pt; text-align: justify">on a pro forma as adjusted basis, giving effect to the sale by us of shares at an offering price of $__________ &nbsp;per share, after deducting placement agent commissions and estimated offering expenses.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">You should read the following
table in conjunction with &ldquo;Use of Proceeds,&rdquo; &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition
and Results of Operations&rdquo; and our financial statements and related notes included in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The pro forma as adjusted
information set forth below is illustrative only and will be adjusted based on the offering price and other terms of this offering
determined at pricing.</P>


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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; text-align: justify">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><B>As of December 31, <BR>
2021</B></TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><B>Actual</B></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 85%; padding-bottom: 2.5pt; text-align: justify"><B>Cash</B></TD>
    <TD STYLE="width: 1%; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="width: 12%; border-bottom: black 2.25pt double; text-align: right">7,472,224</TD>
    <TD STYLE="width: 1%; padding-bottom: 2.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 10pt; text-align: justify; text-indent: -10pt">Short term liabilities</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">21,058,002</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 10pt; text-align: justify; text-indent: -10pt">Total liabilities including lease obligations &ndash; net of current portion</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">21,058,002</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><B>Stockholders&rsquo; equity:</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt; text-align: justify; text-indent: -10pt">Common stock, $0.0001 par value, 200,000,000 shares authorized, 861,998 shares issued and outstanding</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">12,930</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-align: justify; text-indent: -10pt">Preferred Stock, $0.0001 par value, 5,000,000 shares authorized; 4,268 shares designated as Series C Preferred Stock, $0.0001 par value, 0 issued and outstanding at December 31, 2021; 5,775 shares designated as Series D Preferred Stock, $1,000 par value, 0 issued and outstanding at December 31, 2021; 15 shares designated as Series E Non-Convertible Preferred Stock, $0.0001 par value, 9 issued and outstanding at December 31, 2021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Additional paid-in capital</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">156,171,483</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; text-align: justify">Retained earnings (deficit)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(98,287,890)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; text-align: justify"><B>Total stockholders&rsquo; equity</B></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double"><B>$</B></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right"><P STYLE="margin: 0pt 0; font: 11pt Times New Roman, Times, Serif">57,896,523</P></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Unless otherwise stated
in this prospectus, the total number of shares of common stock outstanding as of the date of this prospectus and after this offering
is based on __________ shares outstanding as of __________ , 2022, assumes the sale of units based on an assumed public offering
price of $__________, the last reported sales price of our shares of common stock on the Nasdaq Capital Market on __________, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30.85pt">The total number of
shares of common stock outstanding as of the date of this prospectus and after this offering is based on 861,998 shares outstanding
as of December 31, 2021, and excludes the following other securities as of December 31, 2021:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30.85pt">&nbsp;</P>


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    <!-- Field: /Page -->

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 3%">&bull;&nbsp;</TD>
    <TD STYLE="width: 94%">281,832 shares of common stock issuable as of the date hereof upon the exercise of common stock outstanding warrants with a weighted average exercise price of $241 per share;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&bull;</TD>
    <TD>83 shares of common stock available for future issuance under the Company 2016 Equity Incentive Plan;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&bull;</TD>
    <TD>625 shares of common stock available for future issuance under the Company 2018 Equity Incentive Plan; and</TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 3%; font-size: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="width: 94%; font-size: 10pt"><FONT STYLE="font-size: 10pt">1,354 shares of common stock issuable upon the exercise of outstanding stock options and RSUs.</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Except as otherwise noted,
all information in this prospectus reflects and assumes (i)&nbsp;no sale of pre-funded units in this offering, which, if sold,
would reduce the number of units that we are offering on a one-for-one basis, (ii)&nbsp;no exercise of outstanding options issued
under our equity incentive plans, and (iii)&nbsp;no exercise of any warrants or pre-funded warrants issued in this offering (including
the Placement Agent Warrants).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_009"></A>DILUTION</P>

<P STYLE="font: bold 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: justify; text-indent: 25.9pt">If you invest in our common
stock in this offering, your ownership interest will be diluted immediately to the extent of the difference between the public
offering price per unit and the as adjusted, net tangible book value per share of common stock immediately after this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our net tangible
book value is the amount of our total tangible assets less our total liabilities. Our net tangible book value as of December
31, 2021 was $ 57.9&nbsp;million, or approximately $67.17 per share. Our pro&nbsp;forma net tangible book value as of
December&nbsp;31, 2021 was $62.1 million, or $72.04 per share of our common stock. Pro&nbsp;forma net tangible book value
represents the amount of our total tangible assets less our total liabilities as of December 31, 2021, after giving effect to
our receipt of net proceeds of $4.2&nbsp;million from the issuance of 2,500 shares of Series F Convertible Preferred Stock
and 2,500 shares of Series G Preferred Stock in a registered direct offering on February 15, 2022. Pro&nbsp;forma net
tangible book value per share represents pro&nbsp;forma net tangible book value divided by the total number of shares
outstanding as of December 31, 2021, after giving effect to the pro&nbsp;forma adjustment described above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">After giving further effect
to the assumed sale of __________ shares of our common stock and warrants to purchase __________ shares of our common stock for
__________ per share at the public offering price of $ __________ per share and related warrant, the closing sale price per share
of our common stock on the Nasdaq Capital Market on ______, 2022, assuming no sale of pre-funded warrants in this offering and
no exercise of the warrants being offered in this offering and after deducting the Placement Agent fees and expenses and estimated
offering expenses payable by us, our as adjusted pro forma net tangible book value per share as of December 31, 2021, would have
been approximately $__________ million, or approximately $__________ per share. This represents an immediate increase in net tangible
book value per share of $__________ to existing stockholders and an immediate dilution of approximately $__________ per share to
new investors purchasing shares of our common stock in this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Dilution per share to
new investors is determined by subtracting the pro forma, as adjusted, net tangible book value per share after this offering from
the public offering price per share and related warrant paid by new investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The following table illustrates
this per share dilution<SUP>(1)</SUP>:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></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: 82%; text-align: left">Assumed public offering price per unit</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; text-align: right">$</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; text-align: right">[&bull;]</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Historical net tangible book value per share as of December 31, 2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">$</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">[&bull;]</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Pro&nbsp;forma net tangible book value per share (deficit) as of December 31, 2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">$</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">[&bull;]</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Increase in pro forma net tangible book value per share attributable to this offering</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">$</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">[&bull;]</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">As adjusted pro forma net tangible book value per share after giving effect to this offering</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">$</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">[&bull;]</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Dilution in net tangible book value per share to new investors</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">$</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">[&bull;]</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The foregoing discussion
and table do not take into account further dilution to new investors that could occur upon the exercise of outstanding __________
warrants issued to an institutional investor on November 20, 2020, as amended, pursuant to a cashless exercise or Alternate Net
Number mechanism in the warrant. See &ldquo;<I>Risk Factors &ndash; Investors in this offering will experience immediate and substantial
dilution in net tangible book value.&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">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 could result in further dilution to our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(1)</TD><TD STYLE="text-align: justify">Does not include:</TD></TR></TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 3%; text-align: left">&bull;</TD>
    <TD STYLE="width: 94%; text-align: justify">83,334 shares of common stock issuable upon the conversion of 2,500 shares of Series F Convertible Preferred Stock.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&bull;</TD>
    <TD STYLE="text-align: justify">83,334 shares of common stock issuable upon the conversion of 2,500 shares of Series G Convertible Preferred Stock.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&bull;&nbsp;</TD>
    <TD>281,832 shares of common stock issuable as of the date hereof upon the exercise of common stock outstanding warrants with a weighted average exercise price of $241 per share;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&bull;</TD>
    <TD>83 shares of common stock available for future issuance under the Company 2016 Equity Incentive Plan;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&bull;</TD>
    <TD>625 shares of common stock available for future issuance under the Company 2018 Equity Incentive Plan;</TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; width: 3%">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; width: 3%"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="font-size: 10pt; width: 94%"><FONT STYLE="font-size: 10pt">1,354 shares of common stock issuable upon the exercise of outstanding stock options and RSUs; </FONT></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 3%">&bull;</TD>
    <TD STYLE="width: 94%">125,000 shares of common stock issuable upon the exercise of the common stock purchase warrants to be issued to the investors of the Preferred Stock at an exercise price of $37.65 per share;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&bull;</TD>
    <TD>shares of common stock issuable upon warrant exercised pursuant to the cashless Alternate Net Number mechanism contained in the warrant; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&bull;</TD>
    <TD>10,000 shares of common stock issuable upon the exercise of the placement agent warrants issued to the placement agent in our February 2022 direct offering for $37.50 per share;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&bull;</TD>
    <TD>__________ shares of common stock issuable upon exercise of the warrants included in this offering, at an exercise price of $________ per share;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&bull;</TD>
    <TD>___________ shares of common stock issuable upon exercise of the pre-funded warrants&nbsp;included in this offering,&nbsp;at an exercise price of $0.0001 per share; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&bull;</TD>
    <TD>______________ shares of common stock issuable upon the exercise of the Placement Agent Warrants to be issued to the Placement Agent for $___________ per share in this offering.</TD></TR>
</TABLE>
<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: 0; text-align: justify; text-indent: 25.9pt">Each $__________ increase
(decrease) in the assumed public offering price of $ __________ per unit, would increase (decrease) dilution per share to new investors
in this offering by $__________ , assuming that the aggregate number of units offered by us, as set forth on the cover of this
prospectus, remains the same and after deducting the Placement Agent fees and estimated offering expenses payable by us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">To the extent that any
shares of preferred stock converts into shares of common stock or outstanding options or warrants are exercised, 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.</P>

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


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

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




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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_017"></A>DESCRIPTION OF SECURITIES</P>

<P STYLE="font: bold 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: justify; text-indent: 25.9pt">The following description
summarizes certain terms of our capital stock, certain provisions of our Articles of Incorporation and bylaws and certain terms
of the warrants and pre-funded warrants included in this offering. This summary does not purport to be complete and is qualified
in its entirety by the provisions of our certificate of incorporation and bylaws and the provisions of the warrants and the pre-funded
warrants, copies of which are filed with the SEC as exhibits to the Registration Statement on Form S-1 of which this prospectus
forms a part, and to the applicable provisions of Nevada law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We are offering (i) __________
units, each unit consisting of one share of common stock and one warrant to purchase one share of common stock, and (ii) __________
pre-funded&nbsp;units, each pre-funded unit&nbsp;consisting of one share of common stock and one pre-funded warrant to purchase
one share of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Each share of common stock
and accompanying warrant included in each unit will be immediately separable upon issuance and will be issued separately, and each
pre-funded warrant to purchase one share of common stock and the accompanying warrant included in each pre-funded unit will be
immediately separable upon issuance and will be issued separately. The units and pre-funded units will not be issued or certificated.
We are also registering the shares of common stock included in the units and the shares of common stock issuable from time to time
upon exercise of the pre-funded warrants included in pre-funded units and warrants included in the units and the pre-funded units
offered hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Authorized and Outstanding Capital Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our authorized capital
stock presently consists of 200,000,000 shares of common stock, par value $0.0001 per share, and 5,000,000 shares of &ldquo;blank
check&rdquo; preferred stock, par value $0.0001 per share. As of __________ , 2022, we had __________ shares of common stock issued
and outstanding, and nine shares of Series E Non-Convertible Preferred Stock, 2,500 shares of Series F Convertible Preferred Stock
and 2,500 shares of Series G Convertible Preferred stock issued and outstanding.</P>

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


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

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

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

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Voting</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Holders of shares of the
common stock are entitled to one vote for each share held of record on matters properly submitted to a vote of our stockholders.
Stockholders are not entitled to vote cumulatively for the election of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Dividends</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Subject to the dividend
rights of the holders of any outstanding series of preferred stock, holders of shares of common stock will be entitled to receive
ratably such dividends, if any, when, as, and if declared by our Board out of the Company&rsquo;s assets or funds legally available
for such dividends or distributions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Liquidation and Distribution</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">In the event of any liquidation,
dissolution, or winding up of the Company&rsquo;s affairs, holders of the common stock would be entitled to share ratably in the
Company&rsquo;s assets that are legally available for distribution to its stockholders. If the Company has any preferred stock
outstanding at such time, holders of the preferred stock may be entitled to distribution preferences, liquidation preferences,
or both. In such case, the Company must pay the applicable distributions to the holders of its preferred stock before it may pay
distributions to the holders of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Conversion, Redemption, and Preemptive
Rights</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Holders of the common
stock have no preemptive, subscription, redemption or conversion rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Sinking Fund Provisions</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">There are no sinking fund
provisions applicable to the common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"><FONT STYLE="background-color: white"><B>Preferred
Stock</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><FONT STYLE="background-color: white">Pursuant
to our articles of incorporation, our board of directors has the authority, without further action by the stockholders, to issue
from time to time up to 5,000,000 shares of preferred stock in one or more series. Our board of directors may designate the rights,
preferences, privileges and restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, redemption
rights, liquidation </FONT>preference<FONT STYLE="background-color: white">, sinking fund terms and the number of shares constituting
any series or the designation of any series. The issuance of preferred stock could have the effect of restricting dividends on
the common stock, diluting the voting power of the common stock, impairing the liquidation rights of the common stock or delaying,
deterring or preventing a change in control. Such issuance could have the effect of decreasing the market price of the common stock.
We currently have no plans to issue any shares of preferred stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Series E Non-Convertible Preferred
Stock</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The holders of Series
E Non-Convertible Preferred Stock (&ldquo;Series E Preferred Stock&rdquo;) are entitled to vote on all matters subject to a vote
or written consent of the holders of the Company&rsquo;s common stock and all capital stock of the Company having voting rights,
a number of votes of each one share equal to 1% of the total number of votes that the issued and outstanding shares of common stock
and all other voting securities of the Company as of any such date of determination, voting together as a single class, on a fully
diluted basis, subject to applicable law and a certain blocker clause contained in the Series E Certificate of Designation, as
discussed below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Pursuant to the blocker
clause in the Series E Certificate of Designation, the voting power of every holder of the Series E Preferred Stock together with
such holder&rsquo;s affiliates and Attribution Parties, together with any and all securities of the Company owned by such parties,
is limited to 4.99% of the voting power of the Company&rsquo;s outstanding capital stock. The term &ldquo;Attribution Parties&rdquo;
is defined in the Series E Certificate of Designation to consist of the following persons and entities: (i) any investment vehicle,
including, any funds, feeder funds, or managed accounts, currently, or from time to time after the date the shares of Series E
Preferred Stock are issued to the holder, directly or indirectly managed or advised by the holder&rsquo;s investment manager or
any of its affiliates or principals, (ii) any direct or indirect affiliates of the holder or any of the foregoing, (iii) any person
acting or who could be deemed to be acting as a group together with the holder or any of the foregoing; and (iv) any other persons
whose beneficial ownership of the Company&rsquo;s voting securities would or could be aggregated with the holder&rsquo;s and the
other Attribution Parties for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended.</P>

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


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

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Series F Convertible Preferred
Stock</P>

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Dividends</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The holders of Series
F Convertible Preferred Stock will be entitled to dividends, on an as-if converted basis, equal to and in the same form as dividends
actually paid on shares of common stock, when and if actually paid.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Voting</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The Series F Convertible
Preferred Stock has no voting rights, except:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px">&bull;</TD>
    <TD STYLE="text-align: justify"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">the right to vote, with the holders of
common stock, as a single class, with each share of Series F Convertible Preferred Stock entitled to 3,998 votes (pre-split) per
share, on the Reverse Stock Split at the special meeting of the Company&rsquo;s stockholder held on April 15, 2022; and</P>
 </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px">&bull;</TD>
    <TD STYLE="text-align: justify">otherwise, as long as any shares of Series F Convertible Preferred Stock are outstanding, the holders of the Series F Convertible Preferred Stock will be entitled to approve, by a majority vote of the then outstanding shares of Series F Convertible Preferred Stock if the Company seeks to (a)&nbsp;alter or change adversely the powers, preferences or rights given to the Series F Convertible Preferred Stock or alter or amend the Certificate of Designation governing the Series F Convertible Preferred Stock, (b)&nbsp;amend the Articles of Incorporation, as amended or other charter documents in any manner that adversely affects any rights of the holders of the Series F Convertible Preferred Stock, (c)&nbsp;increase the number of authorized shares of Series F Convertible Preferred Stock, or (d)&nbsp;enter into any agreement with respect to any of the foregoing.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I><U>Liquidation</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Upon any liquidation,
dissolution or winding-up of the Company, whether voluntary or involuntary, or a Liquidation, the then holders of the Series F
Convertible Preferred Stock shall be entitled to receive out of the assets, whether capital or surplus, of the Company the same
amount that a holder of common stock would receive if the Series F Convertible Preferred Stock were fully converted (disregarding
for such purposes any conversion limitations hereunder) to common stock which amounts shall be paid pari passu with all holders
of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Conversion</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The Series F Convertible
Preferred Stock is convertible into common stock at any time after the date of issuance. The conversion rate, subject to adjustment
as set forth in the Certificate of Designation governing the Series F Convertible Preferred Stock, is determined by dividing the
stated value of the Series F Convertible Preferred Stock by $30 (the &ldquo;Conversion Price&rdquo;). The Conversion Price can
be adjusted as set forth in the Certificate of Designation governing the Series F Convertible Preferred Stock for stock dividends
and stock splits or the occurrence of a fundamental transaction (as defined below). Upon conversion the shares of Series F Convertible
Preferred Stock shall resume the status of authorized but unissued shares of preferred stock of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Optional Conversion</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The Series F Convertible
Preferred Stock can be converted at the option of the holder at any time and from time to time after the date of issuance.</P>

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


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    <!-- Field: /Page -->

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

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Beneficial Ownership Limitation</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The Series F Convertible
Preferred Stock cannot be converted to common stock if the holder and its affiliates would beneficially own more than 4.99% or
9.99% at the election of the holder of the outstanding common stock. However, any holder may increase or decrease such percentage
to any other percentage not in excess of 9.99% upon notice to us, provided that any increase in this limitation will not be effective
until 61 days after such notice from the holder to us and such increase or decrease will apply only to the holder providing such
notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Preemptive Rights</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">No holders of Series F
Convertible Preferred Stock will, as holders of Series F Convertible Preferred Stock, have any preemptive rights to purchase or
subscribe for our common stock or any of our other securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Redemption</U></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: 0; text-align: justify">The Series F Preferred Stock are not redeemable
by the Company.</P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Series G Convertible Preferred
Stock</P>

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Dividends</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The holders of Series
G Convertible Preferred Stock will be entitled to dividends, on an as-if converted basis, equal to and in the same form as dividends
actually paid on shares of common stock, when and if actually paid.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Voting</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The Series G Convertible
Preferred Stock has no voting rights, except:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px">&bull;</TD>
    <TD STYLE="text-align: justify">the right to vote, with the holders of common stock, as a single
class, with each share of Series G Convertible Preferred Stock entitled to 500,000 votes (pre-split) per share, on the Reverse
Stock Split at the special meeting of the Company&rsquo;s stockholder held on April 15, 2022; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px">&bull;</TD>
    <TD STYLE="text-align: justify">otherwise, as long as any shares of Series G Convertible Preferred Stock are outstanding, the holders of the Series G Convertible Preferred Stock will be entitled to approve, by a majority vote of the then outstanding shares of Series G Convertible Preferred Stock if the Company seeks to (a)&nbsp;alter or change adversely the powers, preferences or rights given to the Series G Convertible Preferred Stock or alter or amend the Certificate of Designation governing the Series G Convertible Preferred Stock, (b)&nbsp;amend the Articles of Incorporation, as amended or other charter documents in any manner that adversely affects any rights of the holders of the Series G Convertible Preferred Stock, (c)&nbsp;increase the number of authorized shares of Series G Convertible Preferred Stock, or (d)&nbsp;enter into any agreement with respect to any of the foregoing.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Liquidation</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Upon any liquidation,
dissolution or winding-up of the Company, whether voluntary or involuntary, or a Liquidation, the then holders of the Series G
Convertible Preferred Stock shall be entitled to receive out of the assets, whether capital or surplus, of the Company the same
amount that a holder of common stock would receive if the Series G Convertible Preferred Stock were fully converted (disregarding
for such purposes any conversion limitations hereunder) to common stock which amounts shall be paid pari passu with all holders
of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Conversion</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The Series G Convertible
Preferred Stock is convertible into common stock after the date of issuance. The conversion rate, subject to adjustment as set
forth in the Certificate of Designation governing the Series G Convertible Preferred Stock, is determined by dividing the stated
value of the Series G Convertible Preferred Stock by $30 (the &ldquo;Conversion Price&rdquo;). The Conversion Price can be adjusted
as set forth in the Certificate of Designation governing the Series G Convertible Preferred Stock for stock dividends and stock
splits or the occurrence of a fundamental transaction (as defined below). Upon conversion the shares of Series G Convertible Preferred
Stock shall resume the status of authorized but unissued shares of preferred stock of the Company.</P>

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


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

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Beneficial Ownership Limitation</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The Series G Convertible
Preferred Stock cannot be converted to common stock if the holder and its affiliates would beneficially own more than 4.99% or
9.99% at the election of the holder of the outstanding common stock. However, any holder may increase or decrease such percentage
to any other percentage not in excess of 9.99% upon notice to us, provided that any increase in this limitation will not be effective
until 61 days after such notice from the holder to us and such increase or decrease will apply only to the holder providing such
notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Preemptive Rights</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">No holders of Series G
Convertible Preferred Stock will, as holders of Series G Convertible Preferred Stock, have any preemptive rights to purchase or
subscribe for our common stock or any of our other securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Redemption</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The Series G Preferred
Stock are not redeemable by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

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

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Series A Warrants</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">In our November 2018 initial
public offering and concurrent private placement, we issued units which included a total of 4,875 of Series A Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Exercisability</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The warrants are exercisable
at any time after their original issuance and at any time up to the date that is five years after their original issuance for the
Series A Warrants The warrants will be exercisable, at the option of each holder, in whole or in part by delivering to us a duly
executed exercise notice and, at any time a registration statement registering the issuance of the shares of common stock underlying
the warrants under the Securities Act is effective and available for the issuance of such shares, or an exemption from registration
under the Securities Act is available for the issuance of such shares, by payment in full in immediately available funds for the
number of shares of common stock purchased upon such exercise. If a registration statement registering the issuance of the shares
of common stock underlying the warrants under the Securities Act is not effective or available and an exemption from registration
under the Securities Act is not available for the issuance of such shares, the holder may, in its sole discretion, elect to exercise
the warrant through a cashless exercise, in which case the holder would receive upon such exercise the net number of shares of
common stock determined according to the formula set forth in the warrant. No fractional shares of common stock will be issued
in connection with the exercise of a warrant. In lieu of fractional shares, we will pay the holder an amount in cash equal to the
fractional amount multiplied by the exercise price</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Exercise Limitation</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">A holder will not have
the right to exercise any portion of the warrant if the holder (together with its affiliates) would beneficially own in excess
of 9.99% of the number of shares of our common stock outstanding immediately after giving effect to the exercise, as such percentage
ownership is determined in accordance with the terms of the warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Exercise Price</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The weighted average
exercise price per whole share of common stock purchasable upon exercise of the warrants is $7,758 per share for the Series A
Warrants. The exercise price is subject to appropriate adjustment in the event of certain stock dividends and distributions,
stock splits, stock combinations, reclassifications or similar events affecting our common stock and also upon any
distributions of assets, including cash, stock or other property to our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Transferability</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Subject to applicable
laws, the warrants may be offered for sale, sold, transferred or assigned without our consent.</P>

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Fundamental Transactions</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">In the event of a fundamental
transaction, as described in the warrants and generally including any reorganization, recapitalization or reclassification of our
common stock, the sale, transfer or other disposition of all or substantially all of our properties or assets, our consolidation
or merger with or into another person, the acquisition of more than 50% of our outstanding common stock, or any person or group
becoming the beneficial owner of 50% of the voting power represented by our outstanding common stock, the holders of the warrants
are entitled to receive upon exercise of the warrants the kind and amount of securities, cash or other property that the holders
would have received had they exercised the warrants immediately prior to such fundamental transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Rights as a Stockholder</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Except as otherwise provided
in the warrants or by virtue of such holder&rsquo;s ownership of shares of our common stock, the holder of a warrant does not have
the rights or privileges of a holder of our common stock, including any voting rights, until the holder exercises the warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Governing Law</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The Series A Warrants
and the warrant agency agreement are governed by New York law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Warrants Offered in this Offering</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30.85pt"><I>The following description
of the warrants we are offering is a summary and is qualified in its entirety by reference to the provisions of the warrant, the
form of which is filed as an exhibit to the registration statement of which this prospectus forms a part.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>Duration and Exercise
Price</I>.&nbsp;</B>Each warrant offered hereby will have an initial exercise price per share equal to $__________ The warrants
will be immediately exercisable and will expire on the __________ anniversary of the original issuance date. The exercise price
and number of shares of common stock issuable upon exercise is subject to appropriate adjustment in the event of stock dividends,
stock splits, reorganizations or similar events affecting our shares of common stock and the exercise price. The warrants will
be issued in certificated form.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>Exercisability</I></B>.&nbsp;The
warrants will be exercisable, at the option of the holder, in whole or in part, by delivering to us a duly executed exercise notice
accompanied by payment in full for the number of shares of common stock purchased upon such exercise (except in the case of a cashless
exercise, as discussed below). A holder (together with its affiliates) may not exercise any portion of the warrant to the extent
that the holder would own more than 4.99% (or, at the election of the holder, 9.99%) of the outstanding shares of common stock
immediately after exercise.&nbsp;However, upon notice from the holder to us, the holder may decrease or increase the holder&rsquo;s
beneficial ownership limitation, which may not exceed 9.99% of the number of outstanding shares of common stock immediately after
giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the warrants, provided
that any increase in the beneficial ownership limitation will not take effect until 61 days following notice to us. Purchasers
in this offering may also elect, prior to the issuance of the warrants, to have the initial exercise limitation set at 9.99% of
our outstanding shares of common stock. No fractional shares will be issued in connection with the exercise of a warrant. In lieu
of fractional shares, we will either pay the holder an amount in cash equal to the fractional amount multiplied by the exercise
price or round down to the next whole share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>Cashless Exercise</I>.</B>&nbsp;If,
at the time a holder exercises its warrants, a registration statement registering the issuance of the shares of common stock underlying
the warrants under the Securities Act is not then effective or available and an exemption from registration under the Securities
Act is not available for the issuance of such shares, then in lieu of making the cash payment otherwise contemplated to be made
to us upon such exercise in payment of the aggregate exercise price, the holder may elect instead to receive upon such exercise
(either in whole or in part) the net number of shares of common stock determined according to a formula set forth in the common
warrants.</P>

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


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>Transferability</I>.&nbsp;</B>Subject
to applicable laws, a warrant may be transferred at the option of the holder upon surrender of the warrant to us together with
the appropriate instruments of transfer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>Exchange Listing</I></B>.
There is no trading market available for the warrants on any securities exchange or nationally recognized trading system. We do
not intend to list the warrants on any securities exchange or nationally&nbsp;recognized trading system.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>Right as a Stockholder</I>.</B>&nbsp;Except
as otherwise provided in the warrants or by virtue of such holder&rsquo;s ownership of our shares of common stock, the holders
of the warrants do not have the rights or privileges of holders of our shares of common stock, including any voting rights, until
they exercise their warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>Fundamental Transaction</I>.</B>&nbsp;In
the event of a fundamental transaction, as described in the warrants and generally including any reorganization, recapitalization
or reclassification of our shares of common stock, the sale, transfer or other disposition of all or substantially all of our properties
or assets, our consolidation or merger with or into another person, the acquisition of more than 50% of our outstanding shares
of common stock, or any person or group becoming the beneficial owner of 50% of the voting power represented by our outstanding
shares of common stock, the holders of the warrants will be entitled to receive upon exercise of the pre-funded warrants the kind
and amount of securities, cash or other property that the holders would have received had they exercised the warrants immediately
prior to such fundamental transaction. Additionally, as more fully described in the warrants, in the event of a fundamental transaction
(as defined in the warrants), the holders of the warrants will be entitled to receive consideration in an amount in cash equal
to the Black Scholes value of the warrants determined according to a formula set forth in the warrants, provided, however, that,
if the fundamental transaction is not within our control, including not approved by our board of directors, then the holder shall
only be entitled to receive the same type or form of consideration (and in the same proportion), at the Black Scholes value of
the unexercised portion of the warrant, that is being offered and paid to the holders of our common stock in connection with the
fundamental transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pre-Funded Warrants Offered in
this Offering</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30.85pt"><I>The following description
of the pre-funded warrants we are offering is a summary and is qualified in its entirety by reference to the provisions of the
pre-funded warrant, the form of which is filed as an exhibit to the registration statement of which this prospectus forms a part.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>Duration and Exercise
Price</I>.&nbsp;</B>Each pre-funded warrant offered hereby will have an initial exercise price per share equal to $0.0001. The
pre-funded warrants will be immediately exercisable and may be exercised at any time until the pre-funded warrants are exercised
in full. The exercise price and number of shares of common stock issuable upon exercise is subject to appropriate adjustment in
the event of stock dividends, stock splits, reorganizations or similar events affecting our shares of common stock and the exercise
price. The pre-funded&nbsp;warrants will be issued in certificate form. The pre-funded warrants will be issued in certificated
form.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>Exercisability</I></B>.
The pre-funded warrants will be exercisable, at the option of the holder, in whole or in part, by delivering to us a duly executed
exercise notice accompanied by payment in full for the number of shares of common stock purchased upon such exercise (except in
the case of a cashless exercise as discussed below). Purchasers of the pre-funded warrants in this offering may elect to deliver
their exercise notice following the pricing of the offering and prior to the issuance of the pre-funded warrants at closing to
have their pre-funded warrants exercised immediately upon issuance and receive shares of common stock underlying the pre-funded
warrants upon closing of this offering. A holder (together with its affiliates) may not exercise any portion of the pre-funded
warrant to the extent that the holder would own more than 4.99% (or, at the election of the holder, 9.99%) of the outstanding shares
of common stock immediately after exercise. However, upon notice from the holder to us, the holder may decrease or increase the
beneficial ownership limitation, which may not exceed 9.99% of the number of shares of common stock outstanding immediately after
giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the pre-funded warrants,
provided that any increase in the beneficial ownership limitation will not take effect until 61 days following notice to us. No
fractional shares of common stock will be issued in connection with the exercise of a pre-funded warrant. In lieu of fractional
shares, we will either pay the holder an amount in cash equal to the fractional amount multiplied by the exercise price or round
down to the next whole share.</P>

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


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>Cashless Exercise</I>.</B>&nbsp;At
any time, in lieu of making the cash payment otherwise contemplated to be made to us upon such exercise, the holder may elect instead
to receive upon such exercise (either in whole or in part) the net number of the shares of common stock determined according to
a formula set forth in the pre-funded warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>Transferability</I>.&nbsp;</B>Subject
to applicable laws, a pre-funded warrant may be transferred at the option of the holder upon surrender of the pre-funded warrant
to us together with the appropriate instruments of transfer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>Exchange Listing</I></B>.
There is no trading market available for the pre-funded warrants on any securities exchange or nationally recognized trading system.
We do not intend to list the pre-funded warrants on any securities exchange or nationally recognized trading system.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>Right as a Shareholder</I>.</B>&nbsp;Except
as otherwise provided in the pre-funded warrants or by virtue of such holder&rsquo;s ownership of our shares of common stock, the
holders of the pre-funded warrants do not have the rights or privileges of holders of our shares of common stock, including any
voting rights, until they exercise their pre-funded warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>Fundamental Transaction</I>.</B>&nbsp;In
the event of a fundamental transaction, as described in the pre-funded warrants and generally including any reorganization, recapitalization
or reclassification of our shares of common stock, the sale, transfer or other disposition of all or substantially all of our properties
or assets, our consolidation or merger with or into another person, the acquisition of more than 50% of our outstanding shares
of common stock, or any person or group becoming the beneficial owner of 50% of the voting power represented by our outstanding
shares of common stock, the holders of the pre-funded warrants will be entitled to receive upon exercise of the pre-funded warrants
the kind and amount of securities, cash or other property that the holders would have received had they exercised the pre-funded
warrants immediately prior to such fundamental transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Anti-Takeover Effects of Nevada Law and
the Articles of Incorporation and Bylaws</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Certain provisions of
the Articles of Incorporation and Bylaws, and certain provisions of the NRS could make our acquisition by a third party, a change
in our incumbent management, or a similar change of control more difficult. These provisions, which are summarized below, are likely
to reduce our vulnerability to an unsolicited proposal for the restructuring or sale of all or substantially all of our assets
or an unsolicited takeover attempt. The summary of the provisions set forth below does not purport to be complete and is qualified
in its entirety by reference to the Articles of Incorporation and the Bylaws and the relevant provisions of the NRS.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I><U>Authorized but Unissued Shares</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our authorized but unissued
shares of common stock and preferred stock are available for future issuance, subject to any limitations imposed by the listing
standards of the Nasdaq Capital Market. These additional shares may be used for a variety of corporate finance transactions, acquisitions
and employee benefit plans. The existence of authorized but unissued and unreserved common stock and preferred stock could make
it more difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our authorized capital
includes &ldquo;blank check.&rdquo; Our Board has the authority to issue preferred stock in one or more class or series and determine
the price, designation, rights, preferences, privileges, restrictions and conditions, including voting and dividend rights, of
those shares without any further vote or action by stockholders. The rights of the holders of common stock will be subject to,
and may be adversely affected by, the rights of holders of any preferred stock that may be issued in the future. The issuance of
additional preferred stock, while providing desirable flexibility in connection with possible financings and acquisitions and other
corporate purposes, could make it more difficult for a third party to acquire a majority of the voting power of our outstanding
voting securities, which could deprive our holders of common stock of a premium that they might otherwise realize in connection
with a proposed acquisition of our Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Action by Written Consent</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our Bylaws provide that
any action required or permitted by law, the Articles of Incorporation, or Bylaws to be taken at a meeting of the stockholders
of the Company may be taken without a meeting if a consent or consents in writing, setting forth the action so taken, shall be
signed by stockholders holding at least a majority of the voting power; provided that if a different proportion of voting power
is required for such an action at a meeting, then that proportion of written consents is required.</P>

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


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

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Advance Notice Requirements</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Stockholders wishing to
nominate persons for election to our Board at a meeting or to propose any business to be considered by our stockholders at a meeting
must comply with certain advance notice and other requirements set forth in our Bylaws and Rule 14a-8 of the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Special Meetings</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our Bylaws provide that
special meetings of stockholders may only be called by the President or Chief Executive Officer. Business transacted at all special
meetings shall be confined to the purposes stated in the notice of the meeting unless all stockholders entitled to vote are present
and consent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Board Vacancies</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our Bylaws provide that
any vacancy on our Board, howsoever resulting, may be filled by a majority vote of the remaining directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Removal of Directors</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our Bylaws provide that
any director may be removed either for or without cause at any special meeting of stockholders by the affirmative vote of at least
two-thirds of the voting power of the issued and outstanding stock entitled to vote; provided, however, that notice of intention
to act upon such matter shall have been given in the notice calling such meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Right to Alter, Amend or Repeal Bylaws</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our Bylaws provide that
they may be altered, amended or repealed at any meeting of the Board at which a quorum is present, by the affirmative vote of a
majority of the Directors present at such meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Indemnification of Officers and Directors
and Insurance</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our Bylaws provide for
limitation of liability of our directors and for indemnification of our directors and officers to the fullest extent permitted
under Nevada law. Our directors and officers may be liable for a breach or failure to perform their duties in accordance with Nevada
law only if their breach or failure to perform constitutes gross negligence, willful misconduct or intentional harm on our Company
or our stockholders. Our directors may not be personally liable for monetary damages for action taken or failure to take action
as a director except in specific instances established by Nevada law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">In accordance with Nevada
law, we may generally indemnify a director or officer against liability incurred in a proceeding if he or she acted in good faith
and believed that his or her conduct was in our best interest and that he or she had no reason to believe his or her conduct was
unlawful. We may not indemnify a director or officer if the person was adjudged liable to us or in the event it is adjudicated
that the director or officer received an improper personal benefit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to
the foregoing provisions, or otherwise, we have been advised that in the opinion of the U.S. Securities and Exchange Commission,
such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Nevada Anti-Takeover Statutes</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The NRS contains provisions
restricting the ability of a Nevada corporation to engage in business combinations with an interested stockholder. Under the NRS,
except under certain circumstances, business combinations with interested stockholders are not permitted for a period of two years
following the date such stockholder becomes an interested stockholder. The NRS defines an interested stockholder, generally, as
a person who is the beneficial owner, directly or indirectly, of 10% of the outstanding shares of a Nevada corporation. In addition,
the NRS generally disallows the exercise of voting rights with respect to &ldquo;control shares&rdquo; of an &ldquo;issuing corporation&rdquo;
held by an &ldquo;acquiring person,&rdquo; unless such voting rights are conferred by a majority vote of the disinterested stockholders.
&ldquo;Control shares&rdquo; are those outstanding voting shares of an issuing corporation which an acquiring person and those
persons acting in association with an acquiring person (i) acquire or offer to acquire in an acquisition of a controlling interest
and (ii) acquire within 90 days immediately preceding the date when the acquiring person became an acquiring person. An &ldquo;issuing
corporation&rdquo; is a corporation organized in Nevada which has two hundred or more stockholders, at least one hundred of whom
are stockholders of record and residents of Nevada, and which does business in Nevada directly or through an affiliated corporation.
The NRS also permits directors to resist a change or potential change in control of the corporation if the directors determine
that the change or potential change is opposed to or not in the best interest of the corporation.</P>

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


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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Award Plans</P>

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>The 2016 Equity Incentive Plan</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The 2016 Equity Incentive
Plan was adopted by the Board and approved by the stockholders on July 6, 2016. The awards per the 2016 Plan may be granted through
July 5, 2026, to the Company&rsquo;s employees, consultants, directors, and non-employee directors provided such consultants, directors,
and non-employee directors render good faith services not in connection with the offer and sale of securities in a capital-raising
transaction. The Awards issuable under the 2016 Plan consist of ISOs, NQSOs, restricted stock awards, stock bonus awards, SARs,
RSUs, performance awards, and other share-based awards. The Board shall administer the 2016 Plan unless and until the Board delegates
administration of the 2016 Plan to a Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The initial number of
shares of common stock authorized and reserved for issuance under the 2016 Plan was 12 million. The amount was subsequently reduced
to 2 million due to the Company&rsquo;s one-for-six reverse stock split on October 5, 2016, then to 1 million for the Company&rsquo;s
1-for-2 reverse stock split on September 3, 2018, then to 100,000 shares for the Company&rsquo;s 1-for-10 reverse stock split on
April 15, 2020, and then to 83 per 02.03d shares due to the Company&rsquo;s reverse stock split of 1-for-150 on April 25, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>The 2018 Equity Incentive Plan</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">On July 1, 2018, the Board
and the stockholders of the Company approved and adopted the Company&rsquo;s 2018 Equity Incentive Plan (the &ldquo;2018 Plan&rdquo;).
The 2018 Plan supplements, and does not replace, the existing 2016 Equity Incentive Plan. Awards may be granted under the 2018
Plan through June 30, 2023 to the Company&rsquo;s employees, officers, consultants, and non-employee directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The Awards issuable under
the 2018 Plan consist of ISOs, NQSOs, restricted stock awards, stock bonus awards, SARs, RSUs, performance awards, and other share-based
awards. The Board shall administer the 2018 Plan unless and until the Board delegates administration of the 2018 Plan to a Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The initial number of
shares of common stock authorized and reserved for issuance under the 2018 Plan was 2 million. The amount was subsequently reduced
to 1 million due to the Company&rsquo;s 1-for-2 reverse stock split on September 3, 2018. On April 12, 2019, the Board and
stockholders approved to increase the number of shares to 20 million and then on February 14, 2022, to 35 million. The amount was
later reduced to 3.5 million as a result to the Company&rsquo;s 1-for-10 reverse stock split on April 15, 2020 and then to 625 per
02.03d shares due to the Company&rsquo;s reverse stock split of 1-for-150 on April 25, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">As of May 13, 2022,
the Company had 1,354 stock options and RSUs issued and outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">As of May 13, 2022, the Company had 416,832 warrants issued and
outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Nevada Business Combination Statutes</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The &ldquo;business combination&rdquo;
provisions of Sections 78.411 to 78.444, inclusive, of the Nevada Revised Statutes, (the &ldquo;NRS&rdquo;), generally prohibit
a Nevada corporation with at least 200 stockholders of record from engaging in various &ldquo;combination&rdquo; transactions with
any interested stockholder for a period of two years after the date of the transaction in which the person became an interested
stockholder, unless the transaction is approved by the Board prior to the date the interested stockholder obtained such status
or the combination is approved by the Board and thereafter is approved at a meeting of the stockholders by the affirmative vote
of stockholders representing at least 60% of the outstanding voting power held by disinterested stockholders, and extends beyond
the expiration of the two-year period, unless:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 3%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%; text-align: justify">&bull;</TD>
    <TD STYLE="vertical-align: top; width: 94%; padding-left: 3.75pt; text-align: justify">the combination was approved by the Board prior to the person becoming an interested stockholder or the transaction by which the person first became an interested stockholder was approved by the Board before the person became an interested stockholder or the combination is later approved by a majority of the voting power held by disinterested stockholders; or</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 3.75pt; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&bull;</TD>
    <TD STYLE="vertical-align: top; padding-left: 3.75pt; text-align: justify">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 two years immediately preceding the date of the announcement of the combination or in the transaction in which it became an interested stockholder, whichever is higher, (b) the market value per share of common stock on the date of announcement of the combination and the date the interested stockholder acquired the shares, whichever is higher, or (c) for holders of preferred stock, the highest liquidation value of the preferred stock, if it is higher.</TD></TR>
</TABLE>
<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: 0; text-align: justify; text-indent: 25.9pt">A &ldquo;combination&rdquo;
is generally defined to include mergers or consolidations or any sale, lease exchange, mortgage, pledge, transfer, or other disposition,
in one transaction or a series of transactions, with an &ldquo;interested stockholder&rdquo; having: (a) an aggregate market value
equal to 5% or more of the aggregate market value of the assets of the corporation, (b) an aggregate market value equal to 5% or
more of the aggregate market value of all outstanding voting shares of the corporation, (c) more than 10% of the earning power
or net income of the corporation, and (d) certain other transactions with an interested stockholder or an affiliate or associate
of an interested stockholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">In general, an &ldquo;interested
stockholder&rdquo; is a person who, together with affiliates and associates, beneficially owns (or within two years, did own) 10%
or more of the voting power of the outstanding voting shares of a corporation. The statute could prohibit or delay mergers or other
takeover or change in control attempts and, accordingly, may discourage attempts to acquire us even though such a transaction may
offer our stockholders the opportunity to sell their stock at a price above the prevailing market price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"><B>Transfer Agent and Registrar</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our transfer agent and
registrar is Vstock Transfer, LLC located at 18 Lafayette Pl, Woodmere, New York 11598. Their telephone number is (212) 828-8436.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Nasdaq Capital Market</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Our common stock and Series
A Warrants are listed on the Nasdaq Capital Market under the symbol &ldquo;TBLT&rdquo; and &ldquo;TBLTW,&rdquo; respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Penny Stock Regulation</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The SEC has adopted regulations
which generally define &ldquo;<I>penny stock</I>&rdquo; to be any equity security that has a market price of less than Five Dollars
($5.00) per share or an exercise price of less than Five Dollars ($5.00) per share. Such securities are subject to rules that impose
additional sales practice requirements on broker-dealers who sell them. For transactions covered by these rules, the broker-dealer
must make a special suitability determination for the purchaser of such securities and have received the purchaser&rsquo;s written
consent to the transaction prior to the purchase. Additionally, for any transaction involving a penny stock, unless exempt, the
rules require the delivery, prior to the transaction, of a disclosure schedule prepared by the SEC relating to the penny stock
market. The broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative,
current quotations for the securities and, if the broker-dealer is the sole market maker, the broker-dealer must disclose this
fact and the broker-dealer&rsquo;s presumed control over the market. Finally, among other requirements, monthly statements must
be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny
stocks. As our common stock immediately following this offering may be subject to such penny stock rules, purchasers in this offering
will in all likelihood find it more difficult to sell their common stock shares in the secondary market.</P>

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


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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Dividend Policy</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">To date we have never
declared a dividend for our common stock. We currently intend to retain future earnings, if any, to finance the expansion of our
business and for general corporate purposes. We cannot assure you that we will distribute any cash in the future. Our cash distribution
policy is within the discretion of our Board and will depend upon various factors, including our results of operations, financial
condition, capital requirements and investment opportunities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_018"></A>MATERIAL U.S. FEDERAL INCOME TAX&nbsp;CONSEQUENCES
TO<BR>
NON-U.S. HOLDERS</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 30.85pt">You are urged to
consult your tax advisor 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 common stock, warrants or pre-funded warrants arising
under the U.S. federal estate or gift tax laws or under the laws of any state, local,&nbsp;non-U.S.&nbsp;or other taxing jurisdiction
or under any applicable tax treaty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"></P>


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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_019"></A>PLAN OF DISTRIBUTION</P>

<P STYLE="font: bold 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: justify; text-indent: 25.9pt">Pursuant to an engagement
agreement, dated April 13, 2022, we have engaged H.C. Wainwright &amp; Co., LLC, or the Placement Agent, to act as our exclusive
placement agent to solicit offers to purchase the securities offered pursuant to this prospectus on a reasonable best efforts basis.
The engagement agreement does not give rise to any commitment by the Placement Agent to purchase any of our securities, and the
Placement Agent will have no authority to bind us by virtue of the engagement agreement. The Placement Agent is not purchasing
or selling any of the securities offered by us under this prospectus, nor is it required to arrange for the purchase or sale of
any specific number or dollar amount of securities. The Placement Agent has agreed to use reasonable best efforts to arrange for
the sale of the securities by us. The Placement Agent does not guarantee that it will be able to raise new capital in any prospective
offering. The Placement Agent may engage sub-agents or selected dealers to assist with the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We will enter into a securities
purchase agreement directly with institutional investors, at such investor&rsquo;s option, which purchase our securities in this
offering. Investors which do not enter into a securities purchase agreement shall rely solely on this prospectus in connection
with the purchase of our securities in this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We will deliver the securities
being issued to the investors upon receipt of investor funds for the purchase of the securities offered pursuant to this prospectus.
We expect to deliver the securities being offered pursuant to this prospectus on or about ____________, 2022. There is no minimum
number of securities or amount of proceeds that is a condition to closing of this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fees and Expenses</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30.85pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30.85pt">The following table shows
the per unit and per pre-funded unit and total Placement Agent fees we will pay in connection with the sale of the securities in
this offering.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 0.75pt; padding-right: 0.75pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-top: 0.75pt; padding-right: 0.75pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; padding-top: 0.75pt; padding-right: 0.75pt; text-align: center"><B>Per Unit</B></TD>
    <TD STYLE="white-space: nowrap; padding-top: 0.75pt; padding-right: 0.75pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-top: 0.75pt; padding-right: 0.75pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; padding-top: 0.75pt; padding-right: 0.75pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Per Pre-Funded</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Unit</B></P></TD>
    <TD STYLE="white-space: nowrap; padding-top: 0.75pt; padding-right: 0.75pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; width: 72%; padding-top: 0.75pt; padding-right: 0.75pt; text-align: justify">Placement Agent Fees</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 0.75pt; padding-right: 0.75pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; white-space: nowrap; vertical-align: bottom; width: 1%; padding-top: 0.75pt; padding-right: 0.75pt">$</TD>
    <TD STYLE="border-bottom: black 1pt solid; white-space: nowrap; vertical-align: bottom; width: 11%; padding-top: 0.75pt; padding-right: 0.75pt; text-align: right"></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 1%; padding-top: 0.75pt; padding-right: 0.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 0.75pt; padding-right: 0.75pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; white-space: nowrap; vertical-align: bottom; width: 1%; padding-top: 0.75pt; padding-right: 0.75pt">$</TD>
    <TD STYLE="border-bottom: black 1pt solid; white-space: nowrap; vertical-align: bottom; width: 11%; padding-top: 0.75pt; padding-right: 0.75pt; text-align: right"></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; width: 1%; padding-top: 0.75pt; padding-right: 0.75pt">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; text-align: justify">Total</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 0.75pt; padding-right: 0.75pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; border-bottom: black 1pt solid; padding-top: 0.75pt; padding-right: 0.75pt">$</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; border-bottom: black 1pt solid; padding-top: 0.75pt; padding-right: 0.75pt; text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; padding-top: 0.75pt; padding-right: 0.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 0.75pt; padding-right: 0.75pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; border-bottom: black 1pt solid; padding-top: 0.75pt; padding-right: 0.75pt">$</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; border-bottom: black 1pt solid; padding-top: 0.75pt; padding-right: 0.75pt; text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; padding-top: 0.75pt; padding-right: 0.75pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We have agreed to pay
the Placement Agent a cash fee equal to 7% of the gross proceeds raised in this offering and a management fee equal to 0.5% of
the gross proceeds raised in this offering. In addition, we have agreed to reimburse the Placement Agent for its non-accountable
expenses in the amount of $50,000, for its legal fees and expenses and other out-of-pocket expenses in an amount up to $100,000
and for its clearing expenses in the amount of $15,950. We estimate the total offering expenses of this offering that will be payable
by us, excluding the Placement Agent fees and expenses, will be approximately $__________ .</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Placement Agent Warrants</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">In addition, we have agreed
to issue to the Placement Agent or its designees warrants to purchase up to _____ shares of common stock (which represents 6% of
the aggregate number of shares of shares of common stock issued in this offering and issuable upon the exercise of the pre-funded
warrants issued in this offering) with an exercise price of $____ per share (representing 125% of the public offering price per
share) and exercisable for five years from the date of the commencement of sales in this offering (the &ldquo;Placement Agent Warrants&rdquo;).
The Placement Agent Warrants are registered on the registration statement of which this prospectus is a part. The form of the Placement
Agent Warrant has been included as an exhibit to this registration statement of which this prospectus forms a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: white">Tail</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><FONT STYLE="background-color: white">We
have also agreed to pay the Placement Agent</FONT>&nbsp;<FONT STYLE="background-color: white">a tail fee equal to the cash and
warrant compensation in this offering, if any investor, who was contacted or introduced to us by the Placement Agent during the
term of its engagement, provides us with capital in any public or private offering or other financing or capital raising transaction
during the 6-month period following expiration or termination of our engagement of the Placement Agent.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="background-color: white"><B>Right
of First Refusal</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We have granted to the
Placement Agent the right to act as sole book-runner, sole manager, sole placement agent and/or sole agent, for any of our future
public and private equity and debt offerings, including all equity linked financings, or if we finance or refinance any indebtedness,
during the six-month period following the consummation of this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We and each of our officers
and directors have agreed with the Placement Agent to be subject to a lock-up period of 60 days following the date of closing of
the offering pursuant to this prospectus. This means that, during the applicable lock-up period, we and such persons may not offer
for sale, contract to sell, sell, distribute, grant any option, right or warrant to purchase, pledge, hypothecate or otherwise
dispose of, directly or indirectly, any of our shares of common stock or any securities convertible into, or exercisable or exchangeable
for, shares of common stock, subject to customary exceptions. The Placement Agent may waive the terms of these lock-up agreements
in its sole discretion and without notice. In addition, we have agreed to not issue any securities that are subject to a price
reset based on the trading prices of our common stock or upon a specified or contingent event in the future or enter into any
agreement to issue securities at a future determined price for a period of one year following the closing date of this offering,
subject to an exception. The Placement Agent may waive this prohibition in its sole discretion and without notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Regulation M</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The Placement Agent may
be deemed to be an underwriter within the meaning of Section 2(a)(11) of the Securities Act, and any commissions received by it
and any profit realized on the resale of the securities sold by it while acting as principal might be deemed to be underwriting
discounts or commissions under the Securities Act. As an underwriter, the Placement Agent would be required to comply with the
requirements of the Securities Act and the Exchange Act, including, without limitation, Rule 10b-5 and Regulation M under the Exchange
Act. These rules and regulations may limit the timing of purchases and sales of our securities by the Placement Agent acting as
principal. Under these rules and regulations, the Placement Agent (i) may not engage in any stabilization activity in connection
with our securities and (ii) may not bid for or purchase any of our securities or attempt to induce any person to purchase any
of our securities, other than as permitted under the Exchange Act, until it has completed its participation in the distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: white">Indemnification</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30.85pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30.85pt"><FONT STYLE="background-color: white">We
have agreed to indemnify the Placement Agent against certain liabilities, including certain liabilities arising under the Securities
Act, or to contribute to payments that the Placement Agent may be required to make for these liabilities.</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: white">Determination
of Offering Price&nbsp;and Warrant Exercise Price</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><FONT STYLE="background-color: white">The
actual offering price of the securities we are offering, and the exercise price of the warrants included in the units and pre-funded
units that we are offering, were negotiated between us&nbsp;</FONT>and the investors in the offering&nbsp;<FONT STYLE="background-color: white">based
on the trading of our shares of common stock prior to the offering, among other things. Other factors considered in determining
the public offering price of the securities we are offering, as well as the exercise price of the warrants included in the units
and pre-funded units that we are offering include our history and prospects, the stage of development of our business, our business
plans for the future and the extent to which they have been implemented, an assessment of our management, the general conditions
of the securities markets at the time of the offering and such other factors as were deemed relevant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: white">Electronic
Offer, Sale and Distribution of Securities</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><FONT STYLE="background-color: white">A
prospectus in electronic format may be made available on the websites maintained by the Placement Agent, if any, participating
in this offering and the Placement Agent may distribute prospectuses electronically. Other than the prospectus in electronic format,
the information on these websites is not part of this prospectus or the registration statement of which this prospectus forms a
part, has not been approved or endorsed by us or the Placement Agent, and should not be relied upon by investors.</FONT></P>

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


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: white">Other
Relationships</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The Placement Agent and
its respective affiliates will be full service financial institutions engaged in various activities, which may include securities
trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment
hedging, financing and brokerage activities.&nbsp;<FONT STYLE="background-color: white">The Placement Agent and its respective
affiliates may also in the future engage in investment banking and other commercial dealings in the ordinary course of business
with us or our affiliates, for which they would receive customary compensation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The Placement Agent has
acted as sales agent pursuant to the At The Market Offering Agreement, dated February 1, 2022 and has acted as placement agent
for our February 2022 registered direct offering, for which it received compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">From time to time, the
Placement Agent may provide in the future various advisory, investment and commercial banking and other services to us in the ordinary
course of business, for which they may receive customary fees and commissions. However, except as disclosed in this prospectus,
we have no present arrangements with the Placement Agent for any further services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30.85pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 25.9pt">Our shares of common stock are listed on the Nasdaq Capital Market
under the symbol &ldquo;TBLT.&rdquo; Our Series A Warrants are listed on the Nasdaq Capital Market under the symbol &ldquo;TBLTW.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30.85pt"></P>

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_020"></A>EXPERTS</P>

<P STYLE="font: bold 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: justify; text-indent: 25.9pt">Our consolidated financial statements for the fiscal years ended
December 31, 2021 and 2020 included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and incorporated
by reference into this prospectus have been audited by Marcum LLP, an independent registered public accounting firm, as stated
in their report, which is incorporated herein by reference. Such consolidated financial statements have been so incorporated in
reliance upon the report of such firm (which report expresses an unqualified opinion and includes an explanatory paragraph regarding
the Company&rsquo;s going concern uncertainty) given upon their authority as experts in auditing and accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_021"></A>LEGAL MATTERS</P>

<P STYLE="font: bold 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: justify; text-indent: 25.9pt">Certain legal matters
with respect to the validity of the securities being offered by this prospectus will be passed upon by Carmel, Milazzo &amp; Feil
LLP, New York, New York. Ellenoff Grossman &amp; Schole LLP, New York, New York, is acting as counsel for the representatives of
the Placement Agent with respect to the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_023"></A>INCORPORATION OF CERTAIN INFORMATION BY
REFERENCE</P>

<P STYLE="font: bold 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: justify; text-indent: 25.9pt"><FONT STYLE="background-color: white">This
prospectus omits some information contained in the registration statement in accordance with SEC rules and regulations. You should
review the information and exhibits included in the registration statement of which this prospectus is a part for further information
about us and the securities we are offering. Statements in this prospectus concerning any document we filed as an exhibit to the
registration statement or that we otherwise filed with the SEC are not intended to be comprehensive and are qualified by reference
to these filings. You should review the complete document to evaluate these statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The SEC allows us to &ldquo;incorporate
by reference&rdquo; information we file with it, which means that we can disclose important information to you by referring you
to other documents. The information incorporated by reference is considered to be a part of this prospectus. Information contained
in this prospectus supersedes information incorporated by reference that we have filed with the SEC prior to the date of this prospectus.</P>

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


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We incorporate by reference
the following documents listed below (excluding any document or portion thereof to the extent such disclosure is furnished and
not filed):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt 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: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC on April 18, 2022;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt 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: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Our Current Reports on Form 8-K filed with the SEC on February 15, 2022, February 17, 2022, February 23, 2022, April 4, 2022,
April 18, 2022, April 25, 2022, April 27, 2022;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt 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: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Our Preliminary Proxy Statement on Schedule 14A filed with the SEC on and February 22, 2022; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt 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: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">Our Definitive Proxy Statement on Schedule 14A filed with the SEC on January 10, 2022 and March 4,
2022;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: left; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"><FONT STYLE="background-color: white">Information
in the documents referred to above that are incorporated by reference in this prospectus were filed prior to the&nbsp;1-for-150&nbsp;reverse
split of our common stock that was effective on April 25, 2022 and do not reflect the effects of such reverse stock split.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">This prospectus forms
part of a registration statement on Form S-1 that we filed with the SEC. This prospectus does not contain all of the information
set forth in the registration statement and the exhibits to the registration statement or the documents incorporated by reference
herein and therein. For further information with respect to us and the securities that we are offering under this prospectus, we
refer you to the registration statement and the exhibits and schedules filed as a part of the registration statement and the documents
incorporated by reference herein and therein. You should rely only on the information incorporated by reference or provided in
this prospectus and registration statement. We have not authorized anyone else to provide you with different information. You should
not assume that the information in this prospectus and the documents incorporated by reference herein and therein is accurate as
of any date other than the respective dates thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">All reports and other
documents we subsequently file pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act prior to the termination of this
offering, including all such documents we may file with the SEC after the date of the initial registration statement and prior
to the effectiveness of the registration statement, but excluding any information furnished to, rather than filed with, the SEC,
will also be incorporated by reference into this prospectus and deemed to be part of this prospectus from the date of the filing
of such reports and documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Any information in any
of the foregoing documents will automatically be deemed to be modified or superseded to the extent that information in this prospectus
or in a later filed document that is incorporated or deemed to be incorporated herein by reference modifies or replaces such information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Upon written or oral request,
we will provide you without charge a copy of any or all of the documents that are incorporated by reference into this prospectus
including but limited to financial statement information and exhibits which are specifically incorporated by reference into such
documents. Requests should be directed to: ToughBuilt Industries, Inc., Attention: Martin Galstyan, CFO, 25371 Commercentre Drive,
Suite 200, Lake Forest, CA 92630, martin.g@toughbuilt.com or (949) 528-3100. You may access this information https://ir.toughbuilt.com/all-sec-filings.
Except for the specific incorporated documents listed above, no information available on or through our website shall be deemed
to be incorporated in this prospectus or the registration statement of which it forms a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The SEC maintains an internet
website that contains reports, proxy and information statements and other information regarding the issuers that file electronically
with the SEC, including the Company, and can be accessed free of charge on the SEC&rsquo;s website, http://www.sec.gov.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_024"></A>WHERE YOU CAN FIND MORE INFORMATION</P>

<P STYLE="font: bold 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: justify; text-indent: 25.9pt">We have filed with the
SEC a registration statement on Form S-1 under the Securities Act with respect to the securities offered by this prospectus. This
prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration
statement, some of which is contained in exhibits to the registration statement as permitted by the rules and regulations of the
SEC. For further information with respect to us and our securities, we refer you to the registration statement, including the exhibits
filed as a part of the registration statement. Statements contained in this prospectus concerning the contents of any contract
or any other document is not necessarily complete. If a contract or document has been filed as an exhibit to the registration statement,
please see the copy of the contract or document that has been filed. Each statement in this prospectus relating to a contract or
document filed as an exhibit is qualified in all respects by the filed exhibit. You may obtain copies of this information by mail
from the Public Reference Section of the SEC, 100 F Street, N.E., Room 1580, Washington, D.C. 20549, at prescribed rates. You may
obtain information on the operation of the public reference rooms by calling the SEC at 1-800-SEC-0330. The SEC also maintains
an Internet website that contains reports, proxy statements and other information about issuers, like us, that file electronically
with the SEC. The address of that website is located at http://www.sec.gov.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">We are subject to the
information and reporting requirements of the Exchange Act and, in accordance with this law, are required to file periodic reports,
proxy statements and other information with the SEC. These periodic reports, proxy statements and other information are available
for inspection and copying at the SEC&rsquo;s public reference facilities and the website of the SEC referred to above. We also
maintain a website at <I>www.toughbuilt.com</I>. 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.</P>

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_025"></A>FINANCIAL STATEMENTS</P>

<P STYLE="font: bold 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: justify; text-indent: 25.9pt">See Part II. Item 8. Financial Statements and Supplementary Data
of our 2021 Form 10-K. See &ldquo;<I>Incorporation of Certain Information by Reference</I>.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;<IMG SRC="cm077_img01.jpg" ALT=""></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: center"><B>&nbsp;</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>_________ Units, Each Unit Consisting of
One Share of Common Stock and One Warrant to Purchase One Share of Common Stock</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>_________ Pre-funded Units, Each Pre-funded
Unit Consisting of One Pre-funded Warrant to Purchase One Share of Common Stock and One Warrant to Purchase One Share of Common
Stock</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Placement Agent Warrants to Purchase _________
Shares of Common Stock</B></P>

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

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROSPECTUS</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></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"><IMG SRC="cm077_img02.jpg" ALT="">&nbsp;</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: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>H.C. Wainwright &amp; Co.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>The date of this prospectus is ____________,
2022</B></P>

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


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><B>Item 13. Other
Expenses of Issuance and Distribution.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The following table indicates
the expenses to be incurred in connection with the offering described in this registration statement, other than Placement Agent
fees, all of which will be paid by us. All amounts are estimated except the Securities and Exchange Commission (&ldquo;SEC&rdquo;)
registration fee.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><B>Amount</B></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 86%; text-align: justify">SEC registration fee</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 11%; text-align: right">*</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Accountants&rsquo; fees and expenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">*</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Legal fees and expenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">*</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Printing and engraving expenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">*</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; text-align: justify">Miscellaneous</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">*</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; text-align: justify"><B>Total expenses</B></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double"><B>$</B></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">*</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">*To be provided by
amendment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><B>Item 14. Indemnification
of Directors and Officers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The Company&rsquo;s Articles
of Incorporation and Bylaws provide that, to the fullest extent permitted by the laws of the State of Nevada, any officer or director
of the Company, who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit
or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he or she is or was or has
agreed to serve at the request of the Company as a director, officer, employee or agent of the Company, or while serving as a director
or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee
or agent (which, for purposes hereof, shall include a trustee, partner or manager or similar capacity) of another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise, or by reason of any action alleged to have been taken
or omitted in such capacity. For the avoidance of doubt, the foregoing indemnification obligation includes, without limitation,
claims for monetary damages against Indemnitee to the fullest extent permitted under Section 78.7502 of the Nevada Revised Statutes
as in existence on the date hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The indemnification provided
shall be from and against expenses (including attorneys&rsquo; fees), judgments, fines and amounts paid in settlement actually
and reasonably incurred by the indemnitee or on the indemnitee&rsquo;s behalf in connection with such action, suit or proceeding
and any appeal therefrom, but shall only be provided if the indemnitee acted in good faith and in a manner the indemnitee reasonably
believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action, suit or proceeding,
had no reasonable cause to believe the indemnitee&rsquo;s conduct was unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">In the case of any threatened,
pending or completed action or suit by or in the right of the Company to procure a judgment in its favor by reason of the fact
that he or she is or was a director, officer, employee or agent of the Company, or while serving as a director or officer of the
Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, no indemnification shall be made in
respect of any claim, issue or matter as to which the indemnitee shall have been adjudged to be liable to the Company unless, and
only to the extent that, the Nevada courts or the court in which such action or suit was brought shall determine upon application
that, despite the adjudication of liability but in view of all the circumstances of the case, the indemnitee is fairly and reasonably
entitled to indemnity for such expenses which the Nevada courts or such other court shall deem proper.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The termination of any
action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall
not, of itself, create a presumption that he or she did not act in good faith and in a manner which Indemnitee reasonably believed
to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had reasonable
cause to believe that the indemnitee&rsquo;s conduct was unlawful.</P>

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


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    <!-- Field: /Page -->

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">To the extent that indemnification
for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling our company pursuant
to the foregoing provisions, we have been informed that, in the opinion of the SEC, such indemnification is against public policy
as expressed in the Securities Act and is therefore unenforceable. If a claim for indemnification against such liabilities (other
than the payment by us of expenses incurred or paid by a director, officer or controlling person of our company in the successful
defense of any action, suit or proceeding) is asserted by any of our directors, officers or controlling persons in connection with
the securities being registered, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such indemnification by us is against public policy as expressed
in the Securities Act and will be governed by the final adjudication of that issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">In any placement agent
agreement we enter into in connection with the sale of the securities being registered hereby, the Placement Agent will agree to
indemnify, under certain conditions, us, our directors, our officers and persons who control us within the meaning of the Securities
Act of 1933, as amended, or the Securities Act, against certain liabilities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Item 15. Recent Sales of Unregistered Securities.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Set forth below is information
regarding shares of capital stock issued by us within the past three years which were not registered under the Securities Act.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Issuance of Warrants</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">As previously reported
by the Company on a Current Report on Form 8-K filed with the SEC on February 17, 2022, on February 15, 2022, the Company entered
into the February Purchase Agreement with institutional investors named therein, pursuant to which the Company issued, in a registered
direct offering, an aggregate of $5,000,000 of Preferred Stock (split evenly among Series F and Series G, the &ldquo;Preferred
Stock&rdquo;). The shares of Preferred Stock have a stated value of $1,000 per share and are convertible, following the date of
the issuance thereof, into an aggregate of 83,334 shares of common stock of the Company upon the conversion of Series F and into
an aggregate of 83,334 shares of common stock of the Company upon the conversion of Series G, at a conversion price of $30 per
share each. Though the Preferred Stock and the underlying shares of common stock were offered pursuant to the Second Form S-3,
in a concurrent private placement, the Company also issued to such investors unregistered warrants (the &ldquo;February Warrants&rdquo;)
to purchase up to an aggregate of 125,000 shares of the Company&rsquo;s common stock, at an exercise price of $37.65 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The February Warrants
will be exercisable on the date that is the later of (a) the consummation of either a stockholder vote on the proposal to authorize
the Board to effect a reverse stock split (the &ldquo;Reverse Stock Split&rdquo;) or increase the authorized shares of the Company&rsquo;s
common stock; and (b) six months after the date of issuance and will have a term of 5 years from the initial exercise date. The
offering closed on February 15, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">As compensation to Wainwright,
as the exclusive placement agent in connection with the offering, the Company paid Wainwright a cash fee of 7% of the aggregate
gross proceeds raised in the February Direct Offering, plus a management fee equal to 0.5% of the gross proceeds raised in the
offering and reimbursement of certain expenses and legal fees. The Company also issued to designees of Wainwright warrants to purchase
up to 10,000 shares of Common Stock (the &ldquo;Wainwright February Warrants&rdquo;). The Wainwright February Warrants are exercisable
for $37.50 per share and become exercisable on the date that is the later of (a) the consummation of either a stockholder vote
on the proposal to authorize the Company&rsquo;s Board to effect a Reverse Stock Split or increase the authorized shares of the
Company&rsquo;s common stock; and (b) six months after the date of issuance and will expire on February 15, 2027.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The Company received net
proceeds of approximately $4,350,000 from the offering, after deducting the estimated offering expenses payable by the Company,
including the fees payable to Wainwright.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company issued the February Warrants and
the Wainwright February Warrants pursuant to the exemption from the registration requirements of the Securities Act, available
under Section 4(a)(2) and/or Rule 506(b) of Regulation D promulgated thereunder.</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: 0; text-align: justify"><I>Issuance of Series E Preferred Stock</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">As previously reported
by the Company on Forms 8-K filed with the SEC on November 23, 2020 and April 1, 2021, on November 20, 2020, an institutional investor
(the &ldquo;Investor&rdquo;) exchanged its Series A Senior Secured Convertible Note, Series B Senior Convertible Note, and common
stock purchase warrants originally purchased pursuant to a Securities Purchase Agreement, dated August 19, 2019 (the &ldquo;Exchange
Agreement&rdquo;). Pursuant to the Exchange Agreement, the Investor exchanged its securities and agreed to extinguish its first
priority lien on all of the assets of the Company for (i) a cash payment of $744,972; (ii) 12,334 shares of the Company&rsquo;s
common stock; (iii) a warrant to purchase up to an aggregate of 3,834 shares of the common stock for $150 per share, subject to
anti-dilution protection, until August 19, 2024; and (iv) nine shares of Series E Non-Convertible Preferred Stock (the &ldquo;Series
E Preferred Stock&rdquo;) of the Company. On March 26, 2021, the Company issued nine shares of such Series E Preferred Stock to
the Investor. The Company issued foregoing shares of common stock, warrant and Series E Preferred Stock in reliance upon Section
3(a)(9) of the Securities Act as involving an exchange by the Company exclusively with its security holders. On February 15, 2022,
the number of warrant shares issuable upon the exercise of the warrant was increased to 76,667 and the exercise price was amended
to $7.50 per share (as adjusted for the 1-for-150 Reverse Stock Split on April 25, 2022).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>


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    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 16. Exhibits and Financial Statement Schedules.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(a) <B><I>Exhibits</I></B>:
Reference is made to the Exhibit Index following the signature pages hereto, which Exhibit Index is hereby incorporated into this
Item.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(b) <B><I>Financial Statement
Schedules</I></B>: All schedules are omitted because the required information is inapplicable, or the information is presented
in the financial statements and the related notes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><B>Item 17. Undertakings.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The undersigned registrant
hereby undertakes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(1) To file, during any
period in which offers or sales are being made, a post-effective amendment to this registration statement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(i) To include any prospectus
required by section 10(a)(3) of the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(ii) To reflect in the
prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the
registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar
value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated
maximum offering range may be reflected in the form of prospectus filed with the Securities and Exchange Commission pursuant to
Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate
offering price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration statement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(iii) To include any material
information with respect to the plan of distribution not previously disclosed in the registration statement or any material change
to such information in the registration statement; provided, however, that paragraphs (1)(i), (1)(ii) and (1)(iii) above do not
apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed
with or furnished to the Securities and Exchange Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities
Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus
filed pursuant to Rule 424(b) that is part of the registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(2) That, for the purpose
of determining any liability under the Securities Act, each such post-effective amendment 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(3) To remove from registration
by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.</P>

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


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(4) That, for the purpose
of determining liability under the Securities Act to any purchaser:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(A) Each prospectus filed
by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed
prospectus was deemed part of and included in the registration statement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(B) Each prospectus filed
pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying
on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration
statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement
or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference
into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of
contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus
that was part of the registration statement or made in any such document immediately prior to such date of first use.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(5) That for the purpose
of determining liability of the registrant under the Securities Act to any purchaser in the initial distribution of securities,
the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration
statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or
sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser
and will be considered to offer or sell such securities to such purchaser:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(i) Any preliminary prospectus
or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(ii) Any free writing
prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned
registrant;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(iii) The portion of any
other free writing prospectus relating to the offering containing material information about the undersigned registrant or its
securities provided by or on behalf of the undersigned registrant; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(iv) Any other communication
that is an offer in the offering made by the undersigned registrant to the purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant
pursuant to any charter provision, by law or otherwise, the registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other than 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 Securities Act and will
be governed by the final adjudication of such issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">The undersigned registrant
hereby undertakes that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(1) For purposes of determining
any liability under the Securities Act, 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 25.9pt">(2) For the purpose of
determining any liability under the Securities Act, 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.</P>

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


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    <!-- Field: /Page -->

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; width: 8%"><B>Exhibit<BR>
No</B>.<B>: </B></TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 1pt; width: 1%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: justify; width: 35%"><B>Description of Exhibit:</B></TD>
    <TD STYLE="white-space: nowrap; width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; width: 33%; border-bottom: black 1pt solid"><B>Previously Filed and Incorporated<BR>
by Reference herein:</B></TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 1pt; width: 1%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; width: 20%"><B>Date Filed:</B></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315220023070/ex1-1.htm" STYLE="-sec-extract: exhibit">1.1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315220023070/ex1-1.htm" STYLE="-sec-extract: exhibit">At The Market Offering Agreement, dated December 7, 2020, between ToughBuilt Industries, Inc. and H.C. Wainwright &amp; Co., LLC&nbsp;</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315220023070/ex1-1.htm" STYLE="-sec-extract: exhibit">Exhibit 1.1 to Registration Statement on Form S-3 (File No. 333-251185)</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315220023070/ex1-1.htm" STYLE="-sec-extract: exhibit">December 7, 2020</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221002307/ex1-1.htm" STYLE="-sec-extract: exhibit">1.2</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221002307/ex1-1.htm" STYLE="-sec-extract: exhibit">At The Market Offering Agreement, dated February 1, 2021, between ToughBuilt Industries, Inc. and H.C. Wainwright &amp; Co., LLC</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221002307/ex1-1.htm" STYLE="-sec-extract: exhibit">Exhibit 1.1 to Registration Statement on Form S-3 (File No: 333-252630)</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221002307/ex1-1.htm" STYLE="-sec-extract: exhibit">February 2, 2021</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-1.htm" STYLE="-sec-extract: exhibit">3.1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-1.htm" STYLE="-sec-extract: exhibit">Articles of Incorporation, dated April 9, 2012</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-1.htm" STYLE="-sec-extract: exhibit">Exhibit 3.1 to Registration Statement on Form S-1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-1.htm" STYLE="-sec-extract: exhibit">July 9, 2018</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-1.htm" STYLE="-sec-extract: exhibit">3.1.2</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-1.htm" STYLE="-sec-extract: exhibit">Certificate of Amendment, dated December 29, 2015</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-1.htm" STYLE="-sec-extract: exhibit">Exhibit 3.1 to Registration Statement on Form S-1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-1.htm" STYLE="-sec-extract: exhibit">July 9, 2018</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-1.htm" STYLE="-sec-extract: exhibit">3.1.3</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-1.htm" STYLE="-sec-extract: exhibit">Certificate of Change Pursuant to NRS 78.209, dated October 5, 2016</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-1.htm" STYLE="-sec-extract: exhibit">Exhibit 3.1 to Registration Statement on Form S-1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-1.htm" STYLE="-sec-extract: exhibit">July 9, 2018</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218013399/ex3-4.htm" STYLE="-sec-extract: exhibit">3.1.4</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218013399/ex3-4.htm" STYLE="-sec-extract: exhibit">Certificate of Change Pursuant to NRS 78.209, dated September 13, 2018</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218013399/ex3-4.htm" STYLE="-sec-extract: exhibit">Exhibit 3.4 to Registration Statement on Form S-1/A</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218013399/ex3-4.htm" STYLE="-sec-extract: exhibit">September 19, 2018</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-3.htm" STYLE="-sec-extract: exhibit">3.1.5</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-3.htm" STYLE="-sec-extract: exhibit">Certificate of Designations of Class B Convertible Preferred Stock, dated October 5, 2016</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-3.htm" STYLE="-sec-extract: exhibit">Exhibit 3.3 to Registration Statement on Form S-1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-3.htm" STYLE="-sec-extract: exhibit">July 9, 2018</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315220000747/ex3-1.htm" STYLE="-sec-extract: exhibit">3.1.6</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315220000747/ex3-1.htm" STYLE="-sec-extract: exhibit">Certificate of Amendment to the Certificate of Incorporation, dated January 17, 2020</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315220000747/ex3-1.htm" STYLE="-sec-extract: exhibit">Exhibit 3.1 to Current Report on Form 8-K</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315220000747/ex3-1.htm" STYLE="-sec-extract: exhibit">January 17, 2020</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221007623/ex3-1.htm" STYLE="-sec-extract: exhibit">3.1.7</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221007623/ex3-1.htm" STYLE="-sec-extract: exhibit">Certificate of Designation of Series E Non-Convertible Preferred Stock dated as of March 26, 2021</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221007623/ex3-1.htm" STYLE="-sec-extract: exhibit">Exhibit 3.1 to Current Report on Form 8-K</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221007623/ex3-1.htm" STYLE="-sec-extract: exhibit">April 1, 2021</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex3-1.htm" STYLE="-sec-extract: exhibit">3.1.8</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex3-1.htm" STYLE="-sec-extract: exhibit">Certificate of Designations of Series F Convertible Preferred Stock dated as of February 15, 2022</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex3-1.htm" STYLE="-sec-extract: exhibit">Exhibit 3.1 to Current Report on Form 8-K</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex3-1.htm" STYLE="-sec-extract: exhibit">February 17, 2022</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex3-2.htm" STYLE="-sec-extract: exhibit">3.1.9</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex3-2.htm" STYLE="-sec-extract: exhibit">Certificate of Designations of Series G Convertible Preferred Stock dated as of February 15, 2022</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex3-2.htm" STYLE="-sec-extract: exhibit">Exhibit 3.2 to Current Report on Form 8-K</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex3-2.htm" STYLE="-sec-extract: exhibit">February 17, 2022</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000317/cm055_ex3-1.htm" STYLE="-sec-extract: exhibit">3.1.10</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000317/cm055_ex3-1.htm" STYLE="-sec-extract: exhibit">Certificate of Amendment to the Articles of Incorporated, dated as of April 22, 2022</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000317/cm055_ex3-1.htm" STYLE="-sec-extract: exhibit">Exhibit 3.1 to Current Report on Form 8-K</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000317/cm055_ex3-1.htm" STYLE="-sec-extract: exhibit">April 22, 2022</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-2.htm" STYLE="-sec-extract: exhibit">3.2</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-2.htm" STYLE="-sec-extract: exhibit">Amended and Restated Bylaws, dated July 6, 2016</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-2.htm" STYLE="-sec-extract: exhibit">Exhibit 3.2 to Registration Statement on Form S-1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex3-2.htm" STYLE="-sec-extract: exhibit">July 9, 2018</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315220022318/ex4-1.htm" STYLE="-sec-extract: exhibit">4.1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315220022318/ex4-1.htm" STYLE="-sec-extract: exhibit">Warrant, dated November 20, 2020, issued by ToughBuilt Industries, Inc. to the Investor</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315220022318/ex4-1.htm" STYLE="-sec-extract: exhibit">Exhibit 4.1 to Current Report on Form 8-K</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315220022318/ex4-1.htm" STYLE="-sec-extract: exhibit">November 23, 2020</A></TD></TR>
</TABLE>


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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; width: 8%"><B>Exhibit<BR>
No</B>.<B>: </B></TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 1pt; width: 1%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: justify; width: 35%"><B>Description of Exhibit:</B></TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 1pt; width: 2%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; width: 33%"><B>Previously Filed and Incorporated<BR>
by Reference herein:</B></TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 1pt; width: 1%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; width: 20%"><B>Date Filed:</B></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221016839/ex4-1.htm" STYLE="-sec-extract: exhibit">4.2</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221016839/ex4-1.htm" STYLE="-sec-extract: exhibit">Form of Common Warrant dated as of July 14, 2021, issued by ToughBuilt Industries, Inc. to certain purchasers</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221016839/ex4-1.htm" STYLE="-sec-extract: exhibit">Exhibit 4.1 to Current Report on Form 8-K</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221016839/ex4-1.htm" STYLE="-sec-extract: exhibit">July 14, 2021</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221016839/ex4-2.htm" STYLE="-sec-extract: exhibit">4.3</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221016839/ex4-2.htm" STYLE="-sec-extract: exhibit">Form of Placement Agent Warrant dated as of July 14, 2021, issued by ToughBuilt Industries, Inc. to H.C. Wainwright &amp; Co., LLC</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221016839/ex4-2.htm" STYLE="-sec-extract: exhibit">Exhibit 4.2 to Current Report on Form 8-K</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221016839/ex4-2.htm" STYLE="-sec-extract: exhibit">July 14, 2021</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex4-1.htm" STYLE="-sec-extract: exhibit">4.4</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex4-1.htm" STYLE="-sec-extract: exhibit">Form of Common Warrant dated as of February 15, 2022, issued by ToughBuilt Industries, Inc. to certain purchasers </A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex4-1.htm" STYLE="-sec-extract: exhibit">Exhibit 4.1 to Current Report on Form 8-K</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex4-1.htm" STYLE="-sec-extract: exhibit">February 17, 2022</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex4-2.htm" STYLE="-sec-extract: exhibit">4.5</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex4-2.htm" STYLE="-sec-extract: exhibit">Form of Placement Agent Warrant dated as of February 15, 2022, issued by ToughBuilt Industries, Inc. to H.C. Wainwright &amp; Co., LLC</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex4-2.htm" STYLE="-sec-extract: exhibit">Exhibit 4.2 to Current Report on Form 8-K</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex4-2.htm" STYLE="-sec-extract: exhibit">February 17, 2022</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="cm077_ex4-6.htm" STYLE="-sec-extract: exhibit">4.6*</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="cm077_ex4-6.htm" STYLE="-sec-extract: exhibit">Form of Warrant underlying Unit offered hereby</A></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="cm077_ex4-7.htm" STYLE="-sec-extract: exhibit">4.7*</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="cm077_ex4-7.htm" STYLE="-sec-extract: exhibit">Form of pre-funded warrant underlying pre-funded unit offered hereby</A></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="cm077_ex4-8.htm" STYLE="-sec-extract: exhibit">4.8*</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="cm077_ex4-8.htm" STYLE="-sec-extract: exhibit">Form of Placement Agent Warrant offered hereby</A></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>5.1**</TD>
    <TD>&nbsp;</TD>
    <TD>Opinion of Carmel, Milazzo &amp; Feil LLP</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex10-3.htm" STYLE="-sec-extract: exhibit">10.1#</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex10-3.htm" STYLE="-sec-extract: exhibit">Employment Agreement dated as of January 3, 2017 by and between ToughBuilt Industries, Inc. and Michael Panosian</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex10-3.htm" STYLE="-sec-extract: exhibit">Exhibit 10.3 to Registration Statement on Form S-1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex10-3.htm" STYLE="-sec-extract: exhibit">July 9, 2018</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex10-4.htm" STYLE="-sec-extract: exhibit">10.2#</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex10-4.htm" STYLE="-sec-extract: exhibit">Employment Agreement dated as of January 3, 2017 by and between ToughBuilt Industries, Inc. and Zareh Khachatoorian</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex10-4.htm" STYLE="-sec-extract: exhibit">Exhibit 10.4 to Registration Statement on Form S-1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex10-4.htm" STYLE="-sec-extract: exhibit">July 9, 2018</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex10-6.htm" STYLE="-sec-extract: exhibit">10.3#</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex10-6.htm" STYLE="-sec-extract: exhibit">Employment Agreement dated as of January 3, 2017 by and between ToughBuilt Industries, Inc. and Josh Keeler</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex10-6.htm" STYLE="-sec-extract: exhibit">Exhibit 10.6 to Registration Statement on Form S-1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex10-6.htm" STYLE="-sec-extract: exhibit">July 9, 2018</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315220022318/ex10-1.htm" STYLE="-sec-extract: exhibit">10.4#</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315220022318/ex10-1.htm" STYLE="-sec-extract: exhibit">Exchange Agreement, dated November 20, 2020, between ToughBuilt Industries, Inc. and the Investor</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315220022318/ex10-1.htm" STYLE="-sec-extract: exhibit">Exhibit 10.1 to Current Report on Form 8-K</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315220022318/ex10-1.htm" STYLE="-sec-extract: exhibit">November 23, 2020</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221016839/ex10-1.htm" STYLE="-sec-extract: exhibit">10.5</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221016839/ex10-1.htm" STYLE="-sec-extract: exhibit">Form of Securities Purchase Agreement dated as of July 11, 2021, by and between ToughBuilt Industries, Inc. and certain purchasers</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221016839/ex10-1.htm" STYLE="-sec-extract: exhibit">Exhibit 10.1 to Current Report on Form 8-K</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315221016839/ex10-1.htm" STYLE="-sec-extract: exhibit">July 14, 2021</A></TD></TR>
</TABLE>


<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"></P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; width: 8%"><B>Exhibit<BR>
No</B>.<B>: </B></TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 1pt; width: 1%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: justify; width: 35%"><B>Description of Exhibit:</B></TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 1pt; width: 2%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; width: 33%"><B>Previously Filed and Incorporated <BR>
by Reference herein:</B></TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 1pt; width: 1%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; width: 20%"><B>Date Filed:</B></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex10-1.htm" STYLE="-sec-extract: exhibit">10.6</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex10-1.htm" STYLE="-sec-extract: exhibit">Form of Securities Purchase Agreement dated as of February 15, 2022, by and between ToughBuilt Industries, Inc. and certain purchasers</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex10-1.htm" STYLE="-sec-extract: exhibit">Exhibit 10.1 to Current Report on Form 8-K</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000133/cm021_ex10-1.htm" STYLE="-sec-extract: exhibit">February 17, 2022</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000161/cm025_ex10-1.htm" STYLE="-sec-extract: exhibit">10.7</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000161/cm025_ex10-1.htm" STYLE="-sec-extract: exhibit">Form of Letter Agreement dated as of February 18, 2022, between ToughBuilt Industries, Inc. and the purchasers pursuant to the Securities Purchase Agreement dated as of February 15, 2022 </A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000161/cm025_ex10-1.htm" STYLE="-sec-extract: exhibit">Exhibit 10.1 to Current Report on Form 8-K</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000161/cm025_ex10-1.htm" STYLE="-sec-extract: exhibit">February 23, 2022</A></TD></TR>

<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="cm077_ex10-8.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.8*</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="cm077_ex10-8.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Securities Purchase Agreement</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>


<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="cm077_ex10-9.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">10.9*</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="cm077_ex10-9.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Form of Lock-up Agreement</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>

<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 8%"><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex14-1.htm" STYLE="-sec-extract: exhibit">14.1</A></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 35%"><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex14-1.htm" STYLE="-sec-extract: exhibit">Code of Ethics</A></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 33%"><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex14-1.htm" STYLE="-sec-extract: exhibit">Exhibit 14.1 to Registration Statement on Form S-1</A></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 20%"><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex14-1.htm" STYLE="-sec-extract: exhibit">July 9, 2018</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000280/cm047_ex21-1.htm" STYLE="-sec-extract: exhibit">21.1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000280/cm047_ex21-1.htm" STYLE="-sec-extract: exhibit">List of Subsidiaries</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000280/cm047_ex21-1.htm" STYLE="-sec-extract: exhibit">Exhibit 21.1 to Current Report on Form 10-K</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000157587222000280/cm047_ex21-1.htm" STYLE="-sec-extract: exhibit">April 18, 2022</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="cm077_ex23-1.htm">23.1*</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="cm077_ex23-1.htm">Consent of Marcum LLP</A></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD>23.3**</TD>
    <TD>&nbsp;</TD>
    <TD>Consent of Carmel, Milazzo &amp; Feil LLP (included in Exhibit 5.1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="#poi_001" STYLE="-sec-extract: exhibit">24.1*</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="#poi_001" STYLE="-sec-extract: exhibit">Power of Attorney (included on signature page)</A></TD>
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD>&nbsp;</TD>
    <TD></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex99-1.htm" STYLE="-sec-extract: exhibit">99.1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex99-1.htm" STYLE="-sec-extract: exhibit">Audit Committee Charter</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex99-1.htm" STYLE="-sec-extract: exhibit">Exhibit 99.1 to Registration Statement on Form S-1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex99-1.htm" STYLE="-sec-extract: exhibit">July 9, 2018</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex99-2.htm" STYLE="-sec-extract: exhibit">99.2</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex99-2.htm" STYLE="-sec-extract: exhibit">Compensation Committee Charter</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex99-2.htm" STYLE="-sec-extract: exhibit">Exhibit 99.2 to Registration Statement on Form S-1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex99-2.htm" STYLE="-sec-extract: exhibit">July 9, 2018</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex99-3.htm" STYLE="-sec-extract: exhibit">99.3</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex99-3.htm" STYLE="-sec-extract: exhibit">Nominating and Corporate Governance Committee Charter</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex99-3.htm" STYLE="-sec-extract: exhibit">Exhibit 99.3 to Registration Statement on Form S-1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex99-3.htm" STYLE="-sec-extract: exhibit">July 9, 2018</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex99-4.htm" STYLE="-sec-extract: exhibit">99.4</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex99-4.htm" STYLE="-sec-extract: exhibit">Whistleblower Policy</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex99-4.htm" STYLE="-sec-extract: exhibit">Exhibit 99.4 to Registration Statement on Form S-1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1668370/000149315218009821/ex99-4.htm" STYLE="-sec-extract: exhibit">July 9, 2018</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="cm077_ex107.htm">107 *</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="cm077_ex107.htm">Filing Fee Table</A></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>


<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"># Management contract or compensatory plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">*Filed herewith</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">**To be filed by amendment.</P>

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


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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: center"><FONT STYLE="text-transform: uppercase"><B>SIGNATURES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.9pt">Pursuant to the requirements
of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%"><B>TOUGHBUILT INDUSTRIES</B>, <B>INC</B>.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-bottom: 1pt; vertical-align: top">Dated: May 13, 2022</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ <I>Michael Panosian</I></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>Michael Panosian</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">President, Chief Executive Officer and Chairman of the Board of Directors </FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>(Principal Executive Officer)</TD></TR>
</TABLE>
<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: center"><B><A NAME="poi_001"></A>POWER OF ATTORNEY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.9pt">KNOW ALL MEN BY THESE
PRESENTS, that each person whose signature appears below constitutes and appoints Michael Panosian and Martin Galstyan 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.9pt">Pursuant to the requirements
of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the
dates indicated.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; width: 42%"><B>Signature</B></TD>
    <TD STYLE="padding-bottom: 1pt; width: 1%">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 36%; text-align: center"><B>Title</B></TD>
    <TD STYLE="padding-bottom: 1pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 19%; text-align: center"><B>Date</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid"><I>/s/ Michael Panosian</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">President, Chief Executive Officer and
        Chairman of the Board of Directors</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(Principal Executive Officer)</P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">May 13, 2022</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Michael Panosian</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid"><I>/s/ Martin Galstyan</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Chief Financial Officer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(Principal Financial Officer and Principal Accounting Officer)</P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">May 13, 2022</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Martin Galstyan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid"><I>/s/ Robert Faught</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Director</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">May 13, 2022</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Robert Faught</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid"><I>/s/ Linda Moossaian </I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Director</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">May 13, 2022</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Linda Moossaian</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid"><I>/s/ William Placke</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Director</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">May 13, 2022</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>William Placke</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
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[{"type": "S-1", "sequence": "1", "filename": "cm077_s1.htm", "description": "FORM S-1", "secsgml_size_bytes": 447780}]
{"company-data": {"conformed-name": "Toughbuilt Industries, Inc", "cik": "0001668370", "assigned-sic": "3420", "irs-number": "460820877", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-264930", "film-number": "22921918"}, "business-address": {"street1": "25371 COMMERCENTRE DRIVE", "street2": "SUITE 200", "city": "LAKE FOREST", "state": "CA", "zip": "92630", "phone": "(949) 528-3100"}, "mail-address": {"street1": "25371 COMMERCENTRE DRIVE", "street2": "SUITE 200", "city": "LAKE FOREST", "state": "CA", "zip": "92630"}}
As filed with the Securities and Exchange
Commission on May 13, 2022
Registration No. 333-_________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933
TOUGHBUILT
INDUSTRIES, Inc.
(Exact name of registrant as specified in its
charter)
Nevada
3420
46-0820877
(State or Other Jurisdiction of Incorporation or Organization)
(Primary Standard Industrial Classification Code Number)
(I.R.S. Employer Identification No.)
25371 Commercentre Drive, Suite 200
Lake Forest, CA 92630
Telephone: (949) 528-3100
(Address, including zip code, and telephone
number, including area code,
of registrant's principal executive offices)
Mr. Michael Panosian
Chief Executive Officer
ToughBuilt Industries, Inc.
25371 Commercentre Drive, Suite 200
Lake Forest, CA 92630
Telephone: (949) 528-3100
(Name, address, including zip code, and telephone
number, including area code, of agent for service)
With copies to:
Ross D. Carmel, Esq.
John J. Hart, Esq.
Philip Magri, Esq.
Ellenoff Grossman & Schole LLP
Carmel, Milazzo & Feil LLP
1345 Avenue of the Americas
55 West 39
th
Street, 18
th
Floor
New York, NY 10105
New York, NY 10018
Tel: (212) 370-1300
Tel: (212) 658-0458
Fax: (646) 838-1314
Approximate date of commencement of proposed sale to the public:
As soon as practicable after the effective date of this Registration Statement.
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.
x
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please 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, or a smaller reporting company. See the definitions of "large accelerated
filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
¨
Accelerated filer
¨
Non-accelerated filer
x
Smaller reporting company
x
Emerging growth company
x
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 to Section 7(a)(2)(B) of the Securities Act.
¨
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 the Registration Statement shall become effective on such date as the Securities
and Exchange Commission acting pursuant to said Section 8(a), may determine.
The information in
this prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with
the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and is not soliciting
an offer to buy these securities in any state or other jurisdiction where the offer or sale is not permitted.
PRELIMINARY PROSPECTUS
SUBJECT TO COMPLETION, DATED MAY 13,
    2022
TOUGHBUILT INDUSTRIES, INC.
Up to ______________ Units, Each Unit Consisting of One
Share of Common Stock and One Warrant to Purchase One Share of Common Stock
Up to _________________ Pre-funded Units, Each Pre-funded Unit
Consisting of One Pre-funded Warrant to Purchase One Share of Common Stock and One Warrant to Purchase One Share of Common Stock
Placement Agent Warrants to Purchase __________________
Shares of Common Stock
We are offering up to ________  units, each unit consisting
of one share of common stock and one warrant to purchase one share of common stock. The warrants included in the units have an
exercise price of $ ___ per share and will be immediately exercisable and will expire  _________  years from
the date of issuance. The offering price of the units is $ ___ per unit.
We are also offering to
those purchasers, if any, whose purchase of units in this offering would otherwise result in such purchaser, together with its
affiliates and certain related parties, beneficially owning more than 4.99% (or, at the election of the purchaser, 9.99%) of our
outstanding shares of common stock immediately following the consummation of this offering, the opportunity to purchase, if any
such purchaser so chooses, pre-funded units in lieu of units that would otherwise result in such purchaser's beneficial ownership
exceeding 4.99% (or, at the election of the purchaser, 9.99%) of our outstanding shares of common stock. Each pre-funded unit consists
of one pre-funded warrant to purchase one share of common stock and one warrant to purchase one share of common stock. The purchase
price of each pre-funded unit will be equal to the price per unit being sold to the public in this offering, minus $0.0001, and
the exercise price of each pre-funded warrant included in the pre-funded units will be $0.0001 per share. The pre-funded warrants
included in the pre-funded units will be immediately exercisable and may be exercised at any time until all of the pre-funded warrants
are exercised in full. The warrant included in the pre-funded unit is in the same form as the warrant included in the unit.
For each pre-funded unit
we sell, the number of units we are offering will be decreased on a one-for-one basis. The units and the pre-funded units will
not be issued or certificated. The shares of common stock or pre-funded warrants, as the case may be, and the warrants included
in the units or the pre-funded units can only be purchased together in this offering, but the securities contained in the units
or pre-funded units will be immediately separable upon issuance and will be issued separately. The shares of common stock issuable
from time to time upon exercise of the warrants and the pre-funded warrants are also being offered by this prospectus. The registration
statement of which this prospectus forms a part also registers the common stock purchase warrants to be issued to the Placement
Agent and the shares of common stock issuable upon exercise thereof.
Our common stock is listed
on the Nasdaq Capital Market under the symbol "TBLT." The last reported sale price of our common stock on May 12, 2022
was $9.65 per share. In this offering, the actual public offering price per unit or pre-funded unit, as the case may be,
will be determined between us, the Placement Agent and the investors in the offering, and may be at a discount to the current market
price of our common stock. Therefore, the assumed public offering price used throughout this prospectus may not be indicative of
the final offering price. There is no established public trading market for the warrants or the pre-funded warrants, and we do
not expect such a market to develop. In addition, we do not intend to apply for a listing of the warrants or the pre-funded warrants
on any national securities exchange or other nationally recognized trading system.
We have engaged H.C. Wainwright
& Co., LLC, or the Placement Agent, to act as our exclusive placement agent in connection with the securities offered by this
prospectus. The Placement Agent has agreed to use its reasonable best efforts to arrange for the sale of the securities offered
by this prospectus. The Placement Agent is not purchasing or selling any of the securities we are offering, and the Placement Agent
is not required to arrange the purchase or sale of any specific number of securities or dollar amount.
We have agreed to pay the
Placement Agent the Placement Agent fees set forth in the table below, which assumes that we sell all of the securities offered
by this prospectus. See "
Plan of Distribution
" on page 45 of this prospectus for more information regarding
these arrangements.
There is no minimum number of units or pre-funded units or minimum aggregate
amount of proceeds for this offering to close. The offering of the securities will terminate on the first date that we enter into
securities purchase agreements to sell the securities offered hereby.
We may sell fewer than all of the units offered hereby,
which may significantly reduce the amount of proceeds received by us, and investors in this offering will not receive a refund
if we do not sell all of the units offered hereby. In addition, we have not specified a minimum number of securities or amount
of proceeds and we have not established an escrow account in connection with this offering. Because there is no escrow account
and no minimum number of securities or amount of proceeds, investors could be in a position where they have invested in us, but
we have not raised sufficient proceeds in this offering to adequately fund the intended uses of the proceeds as described in this
prospectus.
We are a "smaller
reporting company" and an "emerging growth company" as defined under the federal securities laws and, as such,
we may continue to elect to comply with certain reduced public company reporting requirements in future reports.
Investing in our securities
involves a high degree of risk. See "
Risk Factors
" beginning on page 15
of this prospectus.
Neither the Securities
and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this
prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
Per Unit
Per Pre-
Funded
Unit
Total
Public offering price
$
$
$
Placement agent fees
(1)
$
$
$
Proceeds, before expenses, to us (2)
$
$
$
(1)
We have also agreed to pay the Placement Agent a management fee equal to 0.5% of the gross proceeds raised in this offering and to reimburse the Placement Agent for its non-accountable expenses in the amount of $50,000, for its legal fees and expenses and other out-of-pocket expenses in an amount up to $100,000, and for its clearing expenses in the amount of $15,950. In addition, we have agreed to issue the Placement Agent, or its designees, warrants to purchase a number of shares of common stock equal to 6.0% of the aggregate number of shares of common stock, including shares of common stock underlying the pre-funded warrants, sold in this offering with an exercise price of $___ per share, or 125% of the public offering price per share. See "
Plan of Distribution
" for a description of the compensation to be received by the Placement Agent.
(2)
Because there is no minimum number of securities or amount of proceeds required as a condition to closing in this offering, the actual public offering amount, Placement Agent fees, and proceeds to us, if any, are not presently determinable and may be substantially less than the total maximum offering amounts set forth above. For more information, see "
Plan of Distribution
."
Delivery of the securities
offered hereby is expected to be made on or about , 2022, subject to satisfaction of certain customary closing conditions.
H.C. Wainwright
& Co.
Prospectus dated     , 2022
Table
of Contents
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
2
PROSPECTUS SUMMARY
4
OFFERING SUMMARY
11
RISK FACTORS
15
USE OF PROCEEDS
23
DIVIDEND POLICY
23
CAPITALIZATION
24
DILUTION
25
DESCRIPTION OF SECURITIES
27
MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS
38
PLAN OF DISTRIBUTION
39
EXPERTS
41
LEGAL MATTERS
41
INFORMATION INCORPORATED BY REFERENCE
41
WHERE YOU CAN FIND MORE INFORMATION
42
FINANCIAL STATEMENTS
43
You should rely only on
the information contained in this prospectus or any prospectus supplement or amendment. Neither we, nor the Placement Agent, have
authorized any other person to provide you with information that is different from, or adds to, that contained in this prospectus.
If anyone provides you with different or inconsistent information, you should not rely on it. Neither we nor the Placement Agent
take responsibility for and can provide no assurance as to the reliability of, any other information that others may give you.
You should assume that the information contained in this prospectus, or any free writing prospectus is accurate only as of the
date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of our securities. Our business,
financial condition, results of operations and prospects may have changed since that date. We are not making an offer of any securities
in any jurisdiction in which such offer is unlawful.
No action is being taken
in any jurisdiction outside the United States to permit a public offering of our securities or possession or distribution of this
prospectus in that jurisdiction. Persons who come into possession of this prospectus in jurisdictions outside the United States
are required to inform themselves about and to observe any restrictions as to this public offering and the distribution of this
prospectus applicable to that jurisdiction.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This prospectus contains
"forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A
of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of
1934, as amended (the "Exchange Act"). Forward-looking statements discuss matters that are not historical facts. Because
they discuss future events or conditions, forward-looking statements may include words such as "anticipate," "believe,"
"estimate," "intend," "could," "should," "would," "may,"
"seek," "plan," "might," "will," "expect," "anticipate,"
"predict," "project," "forecast," "potential," and "continue" or the
negatives thereof or similar expressions. Forward-looking statements speak only as of the date they are made, are based on various
underlying assumptions and current expectations about the future and are not guarantees of future performance. Such statements
involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance
or achievement to be materially different from the results of operations or plans expressed or implied by such forward-looking
statements.
You are cautioned to not place undue reliance on these forward-looking statements, which speak only as of their
dates.
We cannot predict all
the risks and uncertainties that may impact our business, financial condition or results of operations. Accordingly, the forward-looking
statements in this prospectus should not be regarded as representations that the results or conditions described in such statements
will occur or that our objectives and plans will be achieved, and we do not assume any responsibility for the accuracy or completeness
of any of these forward-looking statements. These forward-looking statements are found at various places throughout this prospectus
and include information concerning possible or projected future results of our operations, including statements about potential
acquisition or merger targets, strategies or plans; business strategies; prospects; future cash flows; financing plans; plans and
objectives of management; any other statements regarding future acquisitions, future cash needs, future operations, business plans
and future financial results; and any other statements that are not historical facts.
These forward-looking
statements represent our intentions, plans, expectations, assumptions and beliefs about future events and are subject to a variety
of factors and risks, including, but not limited to, those set forth under "
Risk Factors
" starting on page 15
of this prospectus and other risk factors disclosed under "Item 1A. Risk Factors" in the Company's Annual Report
on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on April 18, 2022 (the "2021 Form 10-K").
You should read these risk
factors and the other cautionary statements made in the Company's filings as being applicable to all related forward-looking
statements wherever they appear in this prospectus. We cannot assure you that the forward-looking statements in this prospectus
will prove to be accurate and therefore prospective investors are encouraged not to place undue reliance on forward-looking statements.
You should read this prospectus completely. Other than as required by law, we undertake no obligation to update or revise these
forward-looking statements, even though our situation may change in the future.
We caution investors not
to place undue reliance on any forward-looking statement that speaks only as of the date made and to recognize that forward-looking
statements are predictions of future results, which may not occur as anticipated. Actual results could differ materially from those
anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties described in the
2021 Form 10-K and this prospectus, as well as others that we may consider immaterial or do not anticipate at this time. Although
we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations
will prove correct. Our expectations reflected in our forward-looking statements can be affected by inaccurate assumptions that
we might make or by known or unknown risks and uncertainties, including those described in the 2021 Form 10-K and this prospectus.
These risks and uncertainties are not exclusive and further information concerning us and our business, including factors that
potentially could materially affect our financial results or condition, may emerge from time to time.
For more information about
the risks and uncertainties the Company faces, see the section "Risk Factors" in this prospectus and "Item 1A.
Risk Factors" in our 2021 Form 10-K. Forward-looking statements speak only as of the date they are made. The Company does
not undertake and specifically declines any obligation to update any forward-looking statements or to publicly announce the results
of any revisions to any statements to reflect new information or future events or developments. We advise investors to consult
any further disclosures we may make on related subjects in our annual reports on Form 10-K and other reports that we file with
or furnish to the SEC.
2
MARKET DATA
Market data and certain
industry data and forecasts used throughout this prospectus were obtained from internal company surveys, market research, consultant
surveys, publicly available information, reports of governmental agencies and industry publications and surveys. Industry surveys,
publications, consultant surveys and forecasts generally state that the information contained therein has been obtained from sources
believed to be reliable, but the accuracy and completeness of such information is not guaranteed. To our knowledge, certain third-party
industry data that includes projections for future periods does not take into account the effects of the worldwide coronavirus
pandemic. Accordingly, those third-party projections may be overstated and should not be given undue weight. Forecasts are particularly
likely to be inaccurate, especially over long periods of time. In addition, we do not necessarily know what assumptions regarding
general economic growth were used in preparing the forecasts we cite. Statements as to our market position are based on the most
currently available data. While we are not aware of any misstatements regarding the industry data presented in this prospectus,
our estimates involve risks and uncertainties and are subject to change based on various factors, including those discussed under
the heading "
Risk Factors
" in this prospectus.
TRADEMARKS
Solely for convenience,
our trademarks and tradenames referred to in this prospectus may appear without the ® or ™ symbols, but such references
are not intended to indicate in any way that we will not assert, to the fullest extent under applicable law, our rights to these
trademarks and tradenames. All other trademarks, service marks, and trade names included or incorporated by reference into this
prospectus or the accompanying prospectus are the property of their respective owners.
ABOUT
THIS PROSPECTUS
Throughout this prospectus,
unless otherwise designated or the context suggests otherwise,
•
all references to the "Company," "ToughBuilt," the "registrant," "we," "our," or "us" in this prospectus mean ToughBuilt Industries, Inc., a Nevada corporation, and its subsidiaries;
•
"year" or "fiscal year" means the Company's fiscal year ending December 31
st
; and
•
all dollar or $ references refer to United States dollars.
3
PROSPECTUS SUMMARY
This summary provides a brief overview of
the key aspects of our business and our securities. The reader should read the entire prospectus carefully, especially the risks
of investing in our securities discussed under "Risk Factors." Some of the statements contained in this prospectus,
including statements under "Offering Summary" and "Risk Factors" as well as those noted in the documents
incorporated herein by reference, are forward-looking statements and may involve a number of risks and uncertainties. Our actual
results and future events may differ significantly based upon a number of factors. The reader should not put undue reliance on
the forward-looking statements in this document, which speak only as of the date on the cover of this prospectus.
Overview
We were formed to
design, manufacture, and distribute innovative tools and accessories to the building industry. We market and distribute
various home improvement and construction product lines for both Do-It-Yourself ("DIY") and professional markets
under the TOUGHBUILT® brand name, within the global multibillion-dollar per year tool market. All of our products are
designed by our in-house design team. Since our initial launch of product sales eight years ago, we have experienced growth
in annual sales from approximately $1,000,000 in 2013 to approximately $70,000,000 in 2021.
Our business is currently
based on the development of innovative and state-of-the-art products, primarily in tools and hardware category, with particular
focus on building and construction industry with the ultimate goal of making life easier and more productive for contractors and
workers alike. Our three major categories contain a total of 11 product lines, consisting of (i) Soft Goods, which includes kneepads,
tool bags, pouches, and toolbelts; (ii) Metal Goods, which consists of sawhorses, tool stands, and workbench; and (iii) Utility
Products, which includes utility knives, aviation snips, shears, lasers, and levels. The Company also has several additional categories
and product lines in various stages of development.
Our mission consists,
of providing products to the building and home improvement communities that are innovative, of superior quality derived in part
from enlightened creativity for our end users while enhancing performance, improving well-being, and building high brand loyalty.
We operate through the
following subsidiaries: (i) ToughBuilt Industries UK Limited; (ii) ToughBuilt Mexico; (iii) ToughBuilt Amenia LLC; and (iv) ToughBuilt
Brazil.
Corporate History
We were incorporated in
the State of Nevada on April 9, 2012, as Phalanx, Inc. We changed our name to ToughBuilt Industries, Inc. on December 29, 2015.
On September 18, 2018, we effected a 1-for-2 reverse stock split of our common stock. We consummated our initial public offering
pursuant to a registration statement on Form S-1 (File No: 333- 22610) declared effective by the SEC on November 8, 2018 and became
an Exchange Act reporting company pursuant to a Form 8-A (File No. 001-38739) on November 8, 2018. On April 15, 2020, we effected
a 1-for-10 reverse stock split of our outstanding common stock. On April 25, 2022, we effected a 1-for-150 reverse stock split
of our outstanding common stock. All share amounts and dollar amounts have been adjusted for the reverse stock splits.
Business Developments
The following highlights
material business developments in our business during the fiscal year ended December 31, 2021 and during the first quarter ended
March 31, 2022:
•
On February 17, 2021, we announced that we have grown our business from four stock keeping units
    (SKUs) to 25 SKUs with Toolstation, a Netherlands based company with over 60 stores in the Netherlands, Belgium and
    Luxembourg and one of the highly respected single-source suppliers of tools, accessories, and building products for
    professionals and serious do-it-yourselfers. These SKUs include current ranges of ToughBuilt's steel sawhorse line,
    soft-sided tool storage, and kneepads and have been slotted for immediate placement in all stores and in Toolstation's
    catalog;
4
•
In November 2021, we launched two new product lines, ToughBuilt lasers and levels, and fully integrated with our mobile application, ToughBuilt Connect, allowing professional and DIY builders to quickly measure rooms, seamlessly upload information to a smartphone, and create shareable information with the touch of a button;
•
In December 2021, we launched a new product line, the ToughBuilt Workbench, available for purchase across our strategic global partners and buying groups servicing over 14,400 stores worldwide;
•
In August 2021, we launched a new product line, the ToughBuilt utility knives;
•
In September 2021, we launched ToughBuilt Brazil;
•
In 2021, our total revenues, net of allowances,
        totaled approximately $70.0 million as compared to approximately $39.4 million in 2020, including a 71% increase in online sales
        through Amazon.com from $7 million for 2020 to $12 million for 2021; and
•
Since the beginning of 2021, we have raised a total of approximately $87.5 million in net proceeds in registered equity offerings.
Our Products
TOUGHBUILT® manufactures
and distributes an array of high-quality and rugged toolbelts, tool bags, and other personal tool organizer products. We also manufacture
and distribute a complete line of knee pads for various construction applications, and a variety of metal goods, including utility
knives, aviation snips, shears, and digital measures such as lasers and levels. Our line of job site tools and material support
products consists of a full line of miter saw and table saw stands, sawhorses/job site tables, roller stands, and workbench. All
of our products are designed and engineered in the United States and manufactured in China, India, and the Philippines under our
quality control supervision. We do not need government approval for any of our products.
Soft Goods
The flagship of the product
line is the soft goods line that consists of over 100 variations of tool pouches, tool rigs, toolbelts and accessories, tool bags,
totes, a variety of storage solutions, and office organizers/bags for laptop/tablet/cellphones, etc. Management believes that the
breadth of the line is one of the deepest in the industry and has specialized designs to suit professionals from all sectors of
the industry including plumbers, electricians, framers, builders, and more.
We have a selection of
over 10 models of kneepads, some with unique patented design features that allow the users to interchange components
to suit particular conditions of use. Management believes that these kneepads are among the best performing kneepads in the industry.
Our "all terrain" knee pad protection with snapshell technology is part of our interchangeable kneepad system which
helps to customize the job site needs. They are made with superior quality using multilevel layered construction, heavy-duty webbing,
and abrasion-resistant PVC rubber.
Metal Goods
Sawhorses and Work Support Products
The second major category
consists of Sawhorses and Work Support products with unique designs targeted at the most discerning users
in the industry. The innovative designs and construction of the more than 15 products in this category have led to the sawhorses
becoming among the best sellers of the category everywhere they are sold. The newest additions in this category include several
stands and work support products that are quickly gaining recognition in the industry and are expected to position themselves in
the top tier products in a short time. Our sawhorse line, miter saw, table saw & roller stands, and workbench are built to
very high standards. Our sawhorse/job site table is fast to set up, holds 2,400 pounds, has adjustable heights, is made of all-metal
construction, and has a compact design. We believe that these lines of products will become the standard in the construction
industry.
5
Our Business Strategy
Our product strategy is
to develop product lines in a number of categories rather than focus on a single line of goods. We believe that this approach allows
for rapid growth, wider brand recognition, and may ultimately result in increased sales and profits within an accelerated time
period. We believe that building brand awareness of our current ToughBuilt lines of products will expand our share of the pertinent
markets. Our business strategy includes the following key elements:
•
A commitment to technological innovation achieved through consumer insight, creativity, and speed to market;
•
A broad selection of products in both brand and private labels;
•
Prompt response;
•
Superior customer service; and
•
Value pricing.
We will continue to consider
other market opportunities while focusing on our customers' specific requirements to increase sales.
Market
In addition to the
construction market, our products are marketed to the "Do-It-Yourself" and home improvement marketplace. The U.S.
housing stock of more than 130 million homes requires regular investment merely to offset normal depreciation. According to Statista.com
1
,
in recent years, the U.S. home improvement industry has witnessed steady growth, and the trend is expected to continue in
the near future. A significant increase occurred in 2020, mostly due to the outbreak of the coronavirus (COVID-19) pandemic and
the lockdowns which ensued, leading people to stay home more often than before and take up hobbies and projects such as DIY home
improvement. According to a Joint Center for Housing Studies forecast, homeowner improvements and repair expenditures were
expected to reach roughly 370 billion U.S. dollars in the first quarter of 2022. Aside from the pandemic
2
, the
rising real estate prices in many Western countries were a likely contributing factor to the increase in home improvement projects.
With real estate price changes outperforming wage increases, homeowners may have opted for upgrading their homes instead
of purchasing a new house.
TOUGHBUILT® products
are available worldwide in many major retailers ranging from home improvement and construction products and services stores to
major online outlets. Currently, we have placements in Lowes, Home Depot, Menards, Bunnings (Australia), Princess Auto (Canada),
Dong Shin Tool PIA (S. Korea) as well as seeking to grow our sales in global markets such as Western and Central Europe, Eastern
Europe, South America, and the Middle East.
1
"Home Depot and Lowe's: average amount spent by consumers 2011-2021"; published by C. Simionato (April 26, 2022); https://www.statista.com/statistics/240861/average-amount-spent-by-consumers-at-the-home-depot-and-lowes/
2
"Home improvement projects - statistics & facts"; published by C. Simionato; (Jan 12, 2022); https
://www.statista.com/topics/7899/home-improvement-projects/#topicHeader__wrapper
6
Retailers by region include:
•
United States: Lowe's, Home Depot, Menards, GM products, Fire Safety, Hartville Hardware, ORR, Pooley, YOW, Wesco, Buzzi, and Western Pacific Building Materials.
•
Canada: Princess Auto.
•
United Kingdom: Toolbank (distribution throughout the UK and online selling for Europe).
•
Australia: Kincrome, and Bunnings.
•
New Zealand: Kincrome, and Bunnings.
•
Russia: VSEInstrumenti.ru.
•
South Korea: Dong Shin Tool PIA Co., Ltd.
We are actively expanding
into markets in Mexico and other Latin American countries, the Middle East, and South Africa.
We are currently in product
line reviews and discussions with Home Depot Canada, Do It Best, True Value, and other major retailers both domestically and internationally.
A product line review requires the supplier to submit a comprehensive proposal that includes product offerings, prices, competitive
market studies, relevant industry trends, and other information. Management anticipates, within the near term, adding to its customer
base up to three major retailers, along with several distributors and private retailers within six sectors and among fifty-six
targeted countries.
New Products
Tools
In 2021, we launched the
following product lines:
•
Lasers;
•
Levels;
•
Utility knives; and
•
Workbench.
Mobile Device Products
Since 2013, we have been
planning, designing, engineering, and sourcing the development of a new line of ToughBuilt mobile devices and accessories to be
used in the construction industry and by building enthusiasts. We are planning to have our mobile device products ready to market
in 2024 at which time we intend to commence marketing and selling our mobile device products to our current global customer base.
We believe that an increasing number of companies in the construction industry are requiring their employees to utilize mobile
devices not just to communicate with others but to utilize the special apps that will allow the construction workers to do their
job better and more efficiently. All of our mobile devices are designed and built in accordance with IP-68 and to a military standard
level of durability.
Our ruggedized mobile
line of products was created to place customized technology and wide varieties of data in the palm of building professionals and
enthusiasts such as contractors, subcontractors, foremen, general laborers, and others. We are designing the devices, accessories,
and custom apps to allow the users to plan with confidence, organize faster, find labor and products faster, estimate accurately,
purchase wisely, protect themselves, workers, and their business, create and track invoicing faster and easier.
Commencing in 2024, we
intend to launch the following accessories: car charger, QI charger, car mounts, and earbud pack, and we will focus on sales in
the following industries: construction, industrial, military, and law enforcement and "dotcoms." In late 2024, we intend
to launch our T.55 rugged mobile phones and earbud headphones, as well as a "T-Dock," attachable battery, tri lens
camera, and tough shield cover and accessories.
In late 2024, we also
intend to launch applications for our mobile phones relating to the following topics:
7
1.
National building codes
2.
Inspection booking
3.
Labor ready
4.
Estimating apps & programs
5.
Structural engineers
6.
Architects
7.
Building plans
8.
Workers comp
9.
Equipment insurance
10.
Project insurance & bonds
11.
Vehicle insurance
12.
Liability insurance
13.
Umbrella insurance
14.
Collection agencies
15.
Construction loans
16.
Small business loans
17.
Job listings
18.
Tool exchange
Intellectual Property
We hold several
patents and trademarks of various durations and believe that we hold or have applied for, or license all of the patent,
trademark, and other intellectual property rights necessary to conduct our business. We utilize trademarks (licensed and
owned) on nearly all of our products and believe having distinctive marks that are readily identifiable is an important
factor in creating a market for our goods, in identifying our brands and our Company, and in distinguishing our goods from
the goods of others. We consider our ToughBuilt
®
, Cliptech
®
, and Fearless
®
trademarks
to be among our most valuable intangible assets. Trademarks registered both in and outside the U.S. are generally valid for
10 years, depending on the jurisdiction, and are generally subject to an indefinite number of renewals for a like period on
appropriate application.
In 2019, the United States
Patent and Trademark Office (USPTO) granted two new design patents (U.S. D840,961 S and US D841,635 S) that cover ToughBuilt's
ruggedized mobile devices, which are valid for a period of 15 years. We also have several patents pending with the USPTO and anticipate
three or four of them to be granted in the near future.
Implications of Being an Emerging Growth
Company and a Smaller Reporting Company
We are an "emerging
growth company," as defined in the JOBS Act. We will remain an emerging growth company until the earlier of (i) the last
day of the fiscal year following the fifth anniversary of the date of the first sale of our common stock pursuant to an effective
registration statement under the Securities Act; (ii) the last day of the fiscal year in which we have total annual gross revenues
of $1.07 billion or more; (iii) the date on which we have issued more than $1 billion in nonconvertible debt during the previous
three years; or (iv) the date on which we are deemed to be a large accelerated filer under applicable SEC rules. We expect that
we will remain an emerging growth company for the foreseeable future but cannot retain our emerging growth company status indefinitely
and will no longer qualify as an emerging growth company on or before the last day of the fiscal year following the fifth anniversary
of the date of the first sale of our common stock pursuant to an effective registration statement under the Securities Act. For
so long as we remain an emerging growth company, we are permitted and intend to rely on exemptions from specified disclosure requirements
that are applicable to other public companies that are not emerging growth companies.
8
These exemptions include:
•
being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced "Management's Discussion and Analysis of Financial Condition and Results of Operations" disclosure;
•
not being required to comply with the requirement of auditor attestation of our internal controls over financial reporting;
•
not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements;
•
reduced disclosure obligations regarding executive compensation; and
•
not being required to hold a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.
An emerging growth company
can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new
or revised accounting standards. This allows an emerging growth company to delay the adoption of certain accounting standards until
those standards would otherwise apply to private companies. We have irrevocably elected to avail ourselves of this extended transition
period and, as a result, we will not be required to adopt new or revised accounting standards on the dates on which adoption of
such standards is required for other public reporting companies.
We are also a "smaller
reporting company" as defined in Rule 12b-2 of the Exchange Act and have elected to take advantage of certain of the scaled
disclosure available for smaller reporting companies. We will remain a smaller reporting company until the end of the fiscal year
in which (i) we have a public common equity float of more than $250 million, or (ii) we have annual revenues for the most
recently completed fiscal year of more than $100 million and a public common equity float or public float of more than $700 million.
We also would not be eligible for status as a smaller reporting company if we become an investment company, an asset-backed issuer
or a majority-owned subsidiary of a parent company that is not a smaller reporting company.
We have elected to take
advantage of certain of the reduced disclosure obligations in the registration statement of which this prospectus is a part and
may elect to take advantage of other reduced reporting requirements in future filings. As a result, the information that we provide
to our stockholders may be different from what you might receive from other public reporting companies in which you hold equity
interests.
Available Information
Our website address is
www.toughbuilt.com
. Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, any amendments
to those reports, proxy and registration statements filed or furnished with the SEC, are available free of charge through our website.
We make these materials available through our website as soon as reasonably practicable after we electronically file such materials
with, or furnish such materials to, the SEC. The reports filed with the SEC by our executive officers and directors pursuant to
Section 16 under the Exchange Act are also made available, free of charge on our website, as soon as reasonably practicable after
copies of those filings are provided to us by those persons. These materials can be accessed through the "Investor Relations"
section of our website. The information contained in, or that can be accessed through, our website is not part of this prospectus.
Our business is subject
to a number of risks. You should be aware of these risks before making an investment decision. These risks are discussed more fully
in the section titled "
Risk Factors
" included those set forth under "Risk Factors" starting on page
15 of this prospectus And other risk factors discussed under Item 1A. Risk Factors of our 2021 Form 10-K filed with the SEC on
April 18, 2022 and incorporated by reference herein. Risks include, but are not limited to, the following:
9
•
Our audited 2021 financial statements have been prepared on a going-concern basis and our continued operations are in doubt;
•
We will require additional capital in order to achieve commercial success and, if necessary, to finance future losses from operations as we endeavor to build revenue, but we do not have any commitments to obtain such capital and we cannot assure you that we will be able to obtain adequate capital as and when required;
•
If the hosts of third-party marketplaces limit our access to such marketplaces, our operations and financial results will be adversely affected;
•
We are highly dependent upon manufacturers in China, India, and the Philippines and an interruption in such relationships or our ability to obtain products from them could adversely affect our business and results of operations;
•
Our financial condition and results of operations for the fiscal year 2022 may be adversely affected by the coronavirus outbreak;
•
The increase in commodity prices such as fuel, plastic, and metal could negatively impact our profit margins;
•
The Company's results of operations could be negatively impacted by inflationary or deflationary economic conditions which could affect the ability to obtain goods from our suppliers in a timely and cost-effective manner;
•
Product liability claims and other kinds of litigation could affect our business, reputation, financial condition, results of operations, and cash flows;
•
Failure to comply with privacy laws and regulations and failure to adequately protect customer data could harm our business, damage our reputation and result in a loss of customers;
•
If we are unable to protect our intellectual property rights, our reputation and brand could be impaired, and we could lose customers;
•
Existing or future government regulation could expose us to liabilities and costly changes in our business operations and could reduce customer demand for our products and services;
•
Geopolitical conditions, including trade disputes and direct or indirect acts of war or terrorism, could have an adverse effect on our operations and financial results;
•
Our shares will be subject to potential delisting if we do not maintain the listing requirements of the Nasdaq Capital Market, including the $1.00 minimum closing bid requirement;
•
As an "emerging growth company" and a "smaller reporting company" under applicable law, we will be subject to lessened disclosure requirements, which could leave our stockholders without information or rights available to stockholders of more mature companies;
•
If research analysts do not publish research about our business or if they issue unfavorable commentary or downgrade our common stock, our stock price and trading volume could decline;
•
We do not currently intend to pay dividends on our common stock in the foreseeable future, and consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock; and
•
The security of our information technology systems may be compromised in the event of system failures, unauthorized access, cyberattacks, or a deficiency in our cybersecurity, and confidential information, including non-public personal information that we maintain, could be improperly disclosed.
10
OFFERING SUMMARY
Units Offered by Us:
Up to __________ units on a "best efforts" basis, each
        unit consisting of one share of common stock and one warrant to purchase one share of common stock, at a price of $ per unit.
Each warrant will have an exercise price of $ ____ per share, will
        be immediately exercisable, and will expire on the ____ anniversary of the original issuance date. This prospectus also relates
        to the offering of the shares of common stock issuable upon exercise of the warrants.
Pre-Funded Units Offered by Us:
We are also offering to those purchasers, if any, whose purchase
        of units in this offering would otherwise result in the purchaser, together with its affiliates and certain related parties, beneficially
        owning more than 4.99% (or, at the election of the purchaser, 9.99%) of our outstanding shares of common stock immediately following
        the consummation of this offering, the opportunity to purchase, if such purchasers so choose, pre-funded units (each pre-funded
        unit consisting of one pre-funded warrant to purchase one share of common stock and one warrant to purchase one share of common
        stock), in lieu of units that would otherwise result in any such purchaser's beneficial ownership exceeding 4.99% (or, at
        the election of the purchaser, 9.99%) of our outstanding shares of common stock.
The purchase price of each pre-funded
        unit will be equal to the price per unit being sold to the public in this offering, minus $0.0001, and the exercise price of each
        pre-funded warrant included in the pre-funded units will be $0.0001 per share. The pre-funded warrants included in the pre-funded
        units will be immediately exercisable and may be exercised at any time until all of the pre-funded warrants are exercised in full.
For each pre-funded unit we sell, the number of units we are offering
        will be decreased on a one-for-one basis.
This prospectus also relates to the offering of the shares of common
        stock issuable upon exercise of the pre-funded warrants.
Common Stock Outstanding Before Offering:
____________ shares of common stock
Common Stock Outstanding After Offering:
_____________ shares of common stock (assuming the sale of all units covered by this prospectus, no sale of pre-funded units, no exercise of any warrants issued in this offering (including the Placement Agent Warrants), and no exercise of outstanding warrants or outstanding options issued under our equity incentive plans.
11
Use of Proceeds:
We intend to use the net proceeds from this offering for general corporate purposes, including working capital. Because this is a best efforts offering with no minimum amount as a condition to closing, we may not sell all or any of the securities offered hereby. As a result, we may receive significantly less in net proceeds than we currently estimate. See "
Use of Proceeds
" in this prospectus.
Dividend Policy:
We have never declared or paid any cash dividends on our shares of common stock. We do not anticipate paying any cash dividends in the foreseeable future.
Risk Factors:
You should carefully consider the risk factors described in the section of this prospectus entitled "Risk Factors," together with the risk factors disclosed under "Item 1A. Risk Factors" and other information included in this prospectus as well as in our 2021 Form 10-K and other materials filed and furnished with the SEC.
Nasdaq Capital Market Trading Symbol:
Our shares of common stock are listed on the Nasdaq Capital Market
        under the symbol "TBLT." We do not intend to list the warrants or the pre-funded warrants on any securities exchange
        or nationally recognized trading system.
We also have Series A Warrants listed on the Nasdaq Capital Market
        under the symbol "TBLTW." No Series A Warrants are being offered in this offering.
Assumptions Used Throughout This Prospectus
Unless otherwise stated
in this prospectus, the total number of shares of common stock outstanding as of the date of this prospectus and after this offering
is based on __________ shares outstanding as of __________ , 2022 (adjusted for the 1-for-150 reverse stock split on April 25,
2022), assumes the sale of units based on an assumed public offering price of $____, the last reported sales price of our shares of
common stock on the Nasdaq Capital Market on __________ , 2022, and excludes the following other securities as of March 31, 2022
(adjusted for the 1-for-150 reverse stock split on April 25, 2022):
•
83,334 shares of common stock issuable upon the conversion of 2,500 shares of Series F Convertible Preferred Stock;
•
83,334 shares of common stock issuable upon the conversion of 2,500 shares of Series G Convertible Preferred Stock;
•
281,832 shares of common stock issuable as of the date hereof upon the exercise of common
    stock outstanding warrants with a weighted average exercise price of $241 per share;
•
83 shares of common stock available for future issuance under the Company 2016 Equity
    Incentive Plan;
•
625 shares of common stock available for future issuance under the Company 2018 Equity Incentive Plan;
•
1,354 shares of common stock issuable upon the exercise of outstanding stock options and RSUs;
•
125,000 shares of common stock issuable upon the exercise of the warrants
to the investors of the Series F Preferred Stock and Series G Preferred Stock for $37.65 per share;
•
shares of common stock issuable upon warrant exercised pursuant to the
cashless Alternate Net Number mechanism contained in the warrant; and
12
•
10,000 shares of common stock issuable upon the exercise of the placement agent warrants issued to the placement agent in our February 2022 direct offering for $37.50 per share.
Except as otherwise noted,
all information in this prospectus reflects and assumes (i) no sale of pre-funded units in this offering, which, if sold, would
reduce the number of units that we are offering on a one-for-one basis, (ii) no exercise of outstanding options issued under our
equity incentive plans and (iii) no exercise of any warrants issued in this offering (including the Placement Agent Warrants).
13
SUMMARY
FINANCIAL DATA
The following tables summarize
our financial data. We derived the summary financial statement data for the years ended December 31, 2021 and 2020 set forth below
from our audited financial statements and related notes contained in this prospectus. Our historical results are not necessarily
indicative of the results that may be expected in the future. You should read the information presented below together with "
Management's
Discussion and Analysis of Financial Condition and Results of Operations
," our financial statements, the notes to those
statements and the other financial information contained in this prospectus.
Summary of Operations in U.S. Dollars
Fiscal Year Ended
December 31,
2021
2020
Net Revenue
$
70,026,324
$
39,433,617
Cost of Goods Sold
50,912,513
26,722,722
OPERATING EXPENSES
Selling, general and administrative
(51,434,180
)
(22,191,041
)
Research and development
(6,980,453
)
(5,056,811
)
Operating loss
(39,300,822
)
(14,386,957
)
OTHER INCOME (LOSS)
1,774,924
(2,961,665
)
NET LOSS
(37,525,898
)
(17,348,622
)
Loss per common share (basic and diluted)
$
(0.37
)
$
(0.68
)
Balance Sheet in U.S. Dollars
As of December 31,
2021
2020
Actual
Actual
Cash
$
7,472,224
$
2,194,850
Total Current Assets
64,870,205
24,296,037
Total Assets
78,954,525
27,490,694
Total Current Liabilities
21,058,002
8,144,641
Total Liabilities
21,058,002
8,144,641
Additional paid-in capital
156,171,483
80,103,653
Total Stockholders Equity
$
57,896,523
$
19,346,053
14
RISK FACTORS
The
following is only a summary of the risks pertaining to our Company. Investment in our securities involves risks. You should carefully
consider the following risk factors in addition to other information contained in this prospectus as well as in our 2021 Form 10-K
and other materials filed with the SEC and incorporated by reference herein. The occurrence of any of the following risks might
cause you to lose all or part of your investment. Some statements in this prospectus, including statements in the following risk
factors, constitute
"
forward-looking statements
."
See "
Incorporation of Certain Information by Reference
"
in this prospectus.
Risks Related to Our Company
Our financial statements have been
prepared on a going-concern basis and our continued operations are in doubt.
The Company has incurred
substantial operating losses since its inception. As reflected in the consolidated financial statements, the Company had an accumulated
deficit of approximately $98.3 million at December 31, 2021, a net loss of approximately $37.5 million for the year ended December
31, 2021, and approximately $66.2 million of net cash used in operating activities for the year ended December 31, 2021. The accompanying
consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and
satisfaction of liabilities in the normal course of business. The Company anticipates incurring additional losses until such time,
if ever, that it can obtain marketing approval to sell, and then generate significant sales, of its technology that is currently
in development. As such it is likely that additional financing will be needed by the Company to fund its operations and to develop
and commercialize its technology. These factors raise substantial doubt about the Company's ability to continue as a going
concern. Although the Company believes that the net proceeds from this offering will satisfy its capital needs for the next twelve
months, the Company will seek to obtain additional capital through the sale of debt or equity financings or other arrangements
to fund operations; however, there can be no assurance that the Company will be able to raise needed capital under acceptable terms,
if at all. The sale of additional equity may dilute investors and newly issued shares may contain senior rights and preferences
compared to currently outstanding shares of common stock. Issued debt securities may contain covenants and limit the Company's
ability to pay dividends or make other distributions to stockholders. If the Company is unable to obtain such additional financing,
future operations would need to be scaled back or discontinued. Due to the uncertainty in the Company's ability to raise
capital, management believes that there is substantial doubt in the Company's ability to continue as a going concern for
the next twelve months.
We will require additional capital
in order to achieve commercial success and, if necessary, to finance future losses from operations as we endeavor to build revenue,
but we do not have any commitments to obtain such capital and we cannot assure you that we will be able to obtain adequate capital
as and when required.
We may not be able
to generate any profit in the foreseeable future.
For the year ended December 31, 2021,
we have a net loss of approximately $37.5 million compared to a net loss of approximately $17.3 million for the year ended
December 31, 2020.
Accordingly, there is no assurance that we will realize profits in fiscal 2022 or thereafter. If we
fail to generate profits from our operations, we will not be able to sustain our business. We may never report profitable
operations or generate sufficient revenue to maintain our Company as a going concern. We continue to control our cash
expenses as a percentage of expected revenue on an annual basis and thus may use our cash balances in the short term to
invest in revenue growth; however, we cannot give assurance that we can increase our cash balances or limit our cash
consumption and thus maintain sufficient cash balances for our planned operations. Future business demands may lead to cash
utilization at levels greater than recently experienced. We may need to raise additional capital in the future. However, we
cannot assure that we will be able to raise additional capital on acceptable terms, or at all. Our inability to generate
profits could have an adverse effect on our financial condition, results of operations, and cash flows. See
"
Management's Discussion and Analysis of Financial Condition and Results of Operations; Liquidity and Capital
Resources
."
15
Risks Related to Ownership of Securities
An investment in our securities
is speculative and there can be no assurance of any return on any such investment.
An investment in our securities
is speculative and there can be no assurance that investors will obtain any return on their investment. Investors may be subject
to substantial risks involved in an investment us, including the risk of losing their entire investment.
Our shares will be subject to potential
delisting if we do not maintain the listing requirements of the Nasdaq Capital Market, including the $1.00 minimum closing bid
requirement.
Our failure to maintain
our listing and our common stock being de-listed from Nasdaq would make it more difficult for stockholders to dispose of their
common stock and more difficult to obtain accurate price quotations on our common stock.
For example, on May 19,
2021, the Company received a written notice from the Listing Qualifications department of Nasdaq indicating that the Company was
not in compliance with Nasdaq Listing Rule 5550(a)(2), which requires a minimum closing bid price of $1.00 per share of the Company's
common stock (the "Minimum Bid Price Requirement"). The initial notice provided the Company 180 calendar days to regain
compliance with the Minimum Bid Price Requirement. On November 16, 2021, the Company received a written letter from the Listing
Qualifications department of Nasdaq notifying the Company that Nasdaq has granted the Company an additional 180 calendar days,
or until May 16, 2022, to regain compliance with the requirement for the Company's shares of common stock to maintain the
Minimum Bid Price Requirement. On April 25, 2022, we effected a reverse stock split of our common stock on a one-for-150 basis
as part of our plan to compliance with Nasdaq's Minimum Bid Price Requirement. On May 9, 2022, we were notified by
Nasdaq that we had regained compliance with Nasdaq' Minimum Price Requirement.
Failure to maintain our
Nasdaq listing could negatively impact us and our stockholders by reducing the willingness of investors to hold our common stock
because of the resulting decreased price, liquidity and trading of our common stock, limited availability of price quotations,
and reduced news and analyst coverage. These developments may also require brokers trading in our common stock to adhere to more
stringent rules and may limit our ability to raise capital by issuing additional shares in the future. Delisting may adversely
impact the perception of our financial condition and cause reputational harm with investors and parties conducting business with
us. Additionally, if we are subject to delisting from Nasdaq, there can be no assurance that we would be able to list our common
stock on another exchange in a timely fashion, if at all.
This is a best efforts offering,
no minimum amount of securities is required to be sold, and we may not raise the amount of capital we believe is required for our
business plans.
The Placement Agent
has agreed to use its reasonable best efforts to solicit offers to purchase the units and pre-funded units in this offering. The
Placement Agent has no obligation to buy any of the securities from us or to arrange for the purchase or sale of any specific number
or dollar amount of the securities. There is no required minimum number of securities or amount of proceeds that must be sold as
a condition to completion of this offering. Because there is no minimum number of securities or amount of proceeds required as
a condition to the closing of this offering, the actual offering amount, Placement Agent fees and proceeds to us are not presently
determinable and may be substantially less than the maximum amounts set forth above. We may sell fewer than all of the securities
offered hereby, which may significantly reduce the amount of proceeds received by us, and investors in this offering will not receive
a refund in the event that we do not sell all of the units offered in this offering. Thus, we may not raise the amount of capital
we believe is required for our operations in the short-term and may need to raise additional funds, which may not be available
or available on terms acceptable to us.
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.
16
Immediately prior to the
consummation of this offering, there was an outstanding warrant held by an investor exercisable 65,942 shares of common stock ("Warrant
Shares") (subject to a beneficial ownership limitations) for $7.50 per share until April 19, 2024. The warrant also provides
for cashless exercise at investor's option based on the average VWAP of the common stock the twenty (20) trading days immediately
prior to the time of exercise. Also, the investor may, in its sole discretion, elect instead to receive upon such exercise a number
of shares of common stock equal to the "Alternate Net Number," defined in the warrant as being equal to 200%
of the difference of (i) the quotient of (A) the product of (I) such aggregate number of Warrant Shares to be exercised hereunder
pursuant to such exercise notice and (II) $150.00 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations
or other similar events), divided by (B) the Market Price, less (ii) such aggregate number of Warrant Shares to be exercised hereunder
pursuant to such Exercise Notice. The term "Market Price" is defined in the warrant as the higher of (i) $0.264
and (ii) the lower of (1) the closing bid price of the common stock on the trading day immediately prior to such date and (2) the
VWAP of the Common Stock on the trading day immediately prior to such date. As a result of the Alternate Net Number, the investor
is able to purchase substantially more shares of common stock than the investor would otherwise be able to acquire through a cash
or cashless exercise. To the extent that the warrant is exercised its Alternate Net Number mechanism, the purchasers of the shares
sold in this offering will experience further dilution. Our stock price has been, and may continue to be, volatile.
The market price of
our common stock has been, and is expected to be, subject to significant volatility. The value of our common stock may decline
regardless of our operating performance or prospects. Factors affecting our market price include, but are not limited to:
•
the ongoing impacts of the COVID-19 pandemic and resulting impact on stock market performance;
•
fluctuations in our financial results or outlook, or those of companies perceived to be similar to us;
•
changes in the prices of commodities associated with our business;
•
changes in our capital structure, such as future issuances of securities or the incurrence of debt;
•
the relatively small number of outstanding shares of common stock resulting from the 1-for-150 reverse stock split effective on April 25, 2022;
•
announcements by us or our competitors of significant contracts, acquisitions or strategic partnerships;
•
regulatory developments;
•
litigation involving us or our general industry;
•
additions or departures of key personnel;
•
changes in general economy, industry and market conditions; and
•
prolonged disruptions in the global supply chain;
•
if we fail to maintain the listing of our common stock with a U.S. national securities exchange, the liquidity of our common stock could be adversely affected.
Recent events have
caused stock prices for many companies, including ours, to fluctuate in ways unrelated or disproportionate to their operating performance.
The general economic, political and stock market conditions that may affect the market price of our common stock are beyond our
control. The market price of our common stock at any particular time may not remain the market price in the future.
17
Furthermore, stock markets
have experienced price and volume fluctuations that have affected, and continue to affect, the market prices of equity securities
of many companies. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies.
These broad market fluctuations, as well as general economic, political and market conditions, such as recessions, interest rate
changes and international currency fluctuations, may negatively affect the market price of our common stock.
Additionally, the global
economy and financial markets may be adversely affected by geopolitical events, including the current or anticipated impact of
military conflict and related sanctions imposed on Russia by the United States and other countries due to Russia's recent
invasion of Ukraine.
In the past, many companies
that have experienced volatility and sustained declines in the market price of their stock have become subject to securities class
action and derivative action litigation. Securities litigation against us could result in substantial costs and divert our management's
attention from other business concerns, which could materially harm our business. Any insurance we maintain may not provide adequate
coverage against potential losses from such securities litigation, and if claims or losses exceed our liability insurance coverage,
our business would be adversely impacted. In addition, insurance coverage may become more expensive, which would harm our financial
condition and results of operations.
The warrants are speculative in
nature.
The warrants offered in
this offering do not confer any rights of common stock ownership on their holders, such as voting rights or the right to receive
dividends, except as set forth in the warrants, but rather merely represent the right to acquire shares of our common stock at
a fixed price for a limited period of time. Warrants not exercised prior to their expiration date will expire and have no further
value after the expiration date.
The warrants may not have any value.
There can be no assurance
that the market price of our shares of common stock will ever equal or exceed the exercise price of the warrants. In the event
that the stock price of our shares of common stock does not exceed the exercise price of the warrants during the period when the
warrants are exercisable, such warrants may not have any value.
There is no public market for the
warrants to purchase shares of our common stock being offered by us in this offering.
There is no established
public trading market for the warrants being offered in this offering, and we do not expect a market to develop. In addition, we
do not intend to apply to list the warrants on any national securities exchange or other nationally recognized trading system,
including the Nasdaq Capital Market. Without an active market, the liquidity of the warrants will be limited.
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.
18
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.
The requirements of being a public
company may strain our resources, divert management's attention and affect our results of operations.
As a public company in
the United States, we face increased legal, accounting, administrative, and other costs and expenses. We are subject to the reporting
requirements of the Exchange Act and the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"). The Exchange Act requires,
among other things, that we file annual, quarterly, and current reports with respect to our business and financial condition. The
Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal control
over financial reporting. For example, Section 404 of the Sarbanes-Oxley Act ("Section 404") requires that our management
report on the effectiveness of our internal controls structure and procedures for financial reporting. Section 404 compliance may
divert internal resources and will take a significant amount of time and effort to complete. If we fail to maintain compliance
under Section 404, or if in the future management determines that our internal control over financial reporting is not effective
as defined under Section 404, we could be subject to sanctions or investigations by Nasdaq, the SEC, or other regulatory authorities.
Furthermore, investor perceptions of our Company may suffer, and this could cause a decline in the market price of our common stock.
Any failure of our internal control over financial reporting could have a material adverse effect on our stated results of operations
and harm our reputation. If we are unable to implement these changes effectively or efficiently, it could harm our operations,
financial reporting or financial results and could result in an adverse opinion on internal controls from our independent auditors.
We may need to hire a number of additional employees with public accounting and disclosure experience in order to meet our ongoing
obligations as a public company, particularly if we become fully subject to Section 404 and its auditor attestation requirements,
which will increase costs. We expect these rules and regulations to increase our legal and financial compliance costs and to make
some activities more time consuming and costly, although we are currently unable to estimate these costs with any degree of certainty.
A number of those requirements will require us to carry out activities we have not done previously. Our management team and other
personnel will need to devote a substantial amount of time to new compliance initiatives and to meeting the obligations that are
associated with being a public company, which may divert attention from other business concerns, which could have a material adverse
effect on our business, financial condition and results of operations.
Additionally, the expenses
incurred by public companies generally for reporting and corporate governance purposes have been increasing. These increased costs
will require us to divert a significant amount of money that we could otherwise use to develop our business. If we are unable to
satisfy our obligations as a public company, we could be subject to delisting of our common stock, fines, sanctions, and other
regulatory action, and potentially civil litigation.
New laws, regulations, and standards
relating to corporate governance and public disclosure may create uncertainty for public companies, increasing legal and financial
compliance costs and making some activities more time consuming.
These laws, regulations,
and standards are subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, may evolve
over time as new guidance is provided by the courts and other bodies. This could result in continuing uncertainty regarding compliance
matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. If our efforts to comply with
new laws, regulations, and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related
to their application and practice, regulatory authorities may initiate legal proceedings against us, and our business may be adversely
affected.
As a public company subject
to these rules and regulations, we may find it more expensive for us to obtain director and officer liability insurance, and we
may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These factors could also make
it more difficult in the future for us to attract and retain qualified members of our Board and qualified executive officers.
19
We are an "emerging growth
company" and a "smaller reporting company" under the JOBS Act, and we cannot be certain if the reduced disclosure
requirements applicable to emerging growth companies and smaller reporting companies will make our common stock less attractive
to investors.
We are an "emerging
growth company" and a "smaller reporting company" as defined in the JOBS Act, and we have elected to take advantage
of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging
growth companies" and "smaller reporting companies" including, but not limited to:
•
not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act;
•
being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial statements disclosure;
•
taking advantage of an extension of time to comply with new or revised financial accounting standards;
•
reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration statements;
•
exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved; and
•
not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.
We will remain an "emerging
growth company" until the last day of the fiscal year following the fifth anniversary of the date of the first sale of our
common stock pursuant to an effective registration statement under the Securities Act, although we will lose that status sooner
if our revenues exceed $1.07 billion, if we issue more than $1 billion in non-convertible debt in a three year period, or if the
market value of our common stock that is held by non-affiliates exceeds $700 million as of the last day of our most recently completed
second fiscal quarter.
We may continue to be
a smaller reporting company even after we are no longer an emerging growth company. We may take advantage of certain of the scaled
disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long
as (i) the market value of our common stock held by non-affiliates is equal to or less than $250 million as of the last business
day of the most recently completed second fiscal quarter, and (ii) our annual revenues is equal to or less than $100 million during
the most recently completed fiscal year and the market value of our common stock held by non-affiliates is equal to or less than
$700 million as of the last business day of the most recently completed second fiscal quarter.
We cannot predict if investors
will find our common stock less attractive because we rely on these exemptions. If some investors find our common stock less attractive
as a result, there may be a less active trading market for our common stock and our stock price may be more volatile. In addition,
taking advantage of reduced disclosure obligations may make comparison of our financial statements with other public companies
difficult or impossible. If investors are unable to compare our business with other companies in our industry, we may not be able
to raise additional capital as and when we need it, which may materially and adversely affect our financial condition and results
of operations.
If research analysts do not publish
research about our business or if they issue unfavorable commentary or downgrade our common stock, our stock price and trading
volume could decline.
The trading market for
our securities may depend in part on the research and reports that research analysts publish about us and our business. If we do
not maintain adequate research coverage, or if any of the analysts who cover us downgrade our stock or publish inaccurate or unfavorable
research about our business, the price of our common stock could decline. If one or more of our research analysts ceases to cover
our business or fails to publish reports on us regularly, demand for our securities could decrease, which could cause the price
of our common stock or trading volume to decline.
20
We do not currently intend to pay
dividends on our common stock in the foreseeable future, and consequently, your ability to achieve a return on your investment
will depend on appreciation in the price of our common stock.
We have never declared
or paid cash dividends on our common stock and do not anticipate paying any cash dividends to holders of our common stock in the
foreseeable future. Consequently, investors must rely on sales of their common stock after price appreciation, which may never
occur, as the only way to realize any future gains on their investments. There is no guarantee that shares of our common stock
will appreciate in value or even maintain the price at which our stockholders have purchased their shares.
Anti-takeover provisions in our
charter documents and Nevada law could discourage delay or prevent a change of control of our Company and may affect the trading
price of our common stock.
We are a Nevada corporation
and the anti-takeover provisions of the Nevada Control Shares Acquisition Act may discourage, delay, or prevent a change of control
by limiting the voting rights of control shares acquired in a control share acquisition. In addition, our Articles of Incorporation
and Amended and Restated Bylaws ("Bylaws") may discourage, delay or prevent a change in our management or control over
us that stockholders may consider favorable. Among other things, our Articles of Incorporation and Bylaws:
•
authorize the issuance of "blank check" preferred stock that could be issued by our Board in response to a takeover attempt;
•
provide that vacancies on our Board, including newly created directorships, may be filled only by a majority vote of directors then in office, except a vacancy occurring by reason of the removal of a director without cause shall be filled by vote of the stockholders; and
•
limit who may call special meetings of stockholders.
These provisions could
have the effect of delaying or preventing a change of control, whether or not it is desired by, or beneficial to, our stockholders.
We have agreed to indemnify our
officers and directors against lawsuits to the fullest extent of the law.
Nevada law permits the
indemnification of officers and directors against expenses incurred in successfully defending against a claim. Nevada law also
authorizes Nevada corporations to indemnify their officers and directors against expenses and liabilities incurred because of their
being or having been an officer or director. Our organizational documents provide for this indemnification to the fullest extent
permitted by Nevada law.
Prior to, and in no event
not later than, the closing of the offering, we will obtain director and officer liability insurance to cover liabilities our directors
and officers may incur in connection with their services to us. There is no guarantee that such insurance coverage will protect
us from any damages or loss claims filed against it.
Insofar as indemnification
for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers or persons controlling the Company
pursuant to provisions of the State of Nevada, the Company has been informed that, in the opinion of the Securities and Exchange
Commission, such indemnification is against public policy as expressed in that Act and is, therefore, unenforceable.
We may need, but be unable, to
obtain additional funding on satisfactory terms, which could dilute our stockholders or impose burdensome financial restrictions
on our business.
We have relied upon cash
from financing activities and in the future, we hope to rely on revenues generated from operations to fund the cash requirements
of our activities. However, there can be no assurance that we will be able to generate any significant cash from our operating
activities in the future. Future financing may not be available on a timely basis, in sufficient amounts or on terms acceptable
to us, if at all. Any debt financing or other financing of securities senior to the common stock will likely include financial
and other covenants that will restrict our flexibility. Any failure to comply with these covenants would have a material adverse
effect on our business, prospects, financial condition, and results of operations because we could lose our existing sources of
funding and impair our ability to secure new sources of funding.
21
There is no public market for the
warrants to purchase shares of our common stock being offered by us in this offering.
There is no established
public trading market for the warrants being offered in this offering, and we do not expect a market to develop. In addition, we
do not intend to apply to list the warrants on any national securities exchange or other nationally recognized trading system,
including the Nasdaq Capital Market. Without an active market, the liquidity of the warrants will be limited.
IN ADDITION TO THE ABOVE RISKS, BUSINESSES
ARE OFTEN SUBJECT TO RISKS NOT FORESEEN OR FULLY APPRECIATED BY MANAGEMENT. IN REVIEWING THIS FILING, POTENTIAL INVESTORS SHOULD
KEEP IN MIND THAT OTHER POSSIBLE RISKS MAY ADVERSELY IMPACT THE COMPANY'S BUSINESS OPERATIONS AND THE VALUE OF THE COMPANY'S
SECURITIES.
22
USE OF PROCEEDS
We
estimate the net proceeds from this offering will be approximately $
__________
million, after
deducting Placement Agent fees and estimated offering expenses payable by us as described in "Plan of Distribution"
and excluding the proceeds, if any, from the exercise of the warrants sold in this offering. However, this is a best efforts offering
with no minimum number of securities or amount of proceeds as a condition to closing, and we may not sell all or any of these units
or pre-funded units offered pursuant to this prospectus; as a result, we may receive significantly less in net proceeds.
We intend to use the
net proceeds from this offering for general corporate purposes, including working capital.
The use of the proceeds
represents management's estimates based upon current business and economic conditions. We reserve the right to use the net
proceeds we receive in the offering in any manner we consider to be appropriate. Although we do not contemplate changes in the
proposed use of proceeds, to the extent we find that adjustment is required for other uses by reason of existing business conditions,
the use of proceeds may be adjusted. The actual use of the proceeds of this offering could differ materially from those outlined
above as a result of several factors including those set forth under "
Risk Factors
" and elsewhere in this prospectus.
The foregoing information
is an estimate based on our current business plan. Pending our use of the net proceeds from this offering, we intend to invest
the net proceeds in a variety of capital preservation investments, including short-term, investment-grade, interest-bearing instruments,
and U.S. government securities. We anticipate that the proceeds from this offering will enable us to further grow the business
and increase cash flows from operations, although there can be no assurance that will achieve such growth.
DIVIDEND POLICY
We have not declared any
cash dividends since inception, and we do not anticipate paying any dividends in the foreseeable future. Instead, we anticipate
that all of our earnings will be used to provide working capital, to support our operations, and to finance the growth and development
of our business. The payment of dividends is within the discretion of the Board and will depend on our earnings, capital requirements,
financial condition, prospects, applicable Nevada law, which provides that dividends are only payable out of surplus or current
net profits, and other factors our Board might deem relevant. There are no restrictions that currently limit our ability to pay
dividends on our common stock other than those generally imposed by applicable state law.
23
CAPITALIZATION
The following table sets
forth our consolidated cash and capitalization, as of December 31, 2021. Such information is set forth on the following basis:
•
on an actual basis; and
•
on a pro forma as adjusted basis, giving effect to the sale by us of shares at an offering price of $__________  per share, after deducting placement agent commissions and estimated offering expenses.
You should read the following
table in conjunction with "Use of Proceeds," "Management's Discussion and Analysis of Financial Condition
and Results of Operations" and our financial statements and related notes included in this prospectus.
The pro forma as adjusted
information set forth below is illustrative only and will be adjusted based on the offering price and other terms of this offering
determined at pricing.
As of December 31,
2021
Actual
Cash
$
7,472,224
Short term liabilities
$
21,058,002
Total liabilities including lease obligations – net of current portion
$
21,058,002
Stockholders' equity:
Common stock, $0.0001 par value, 200,000,000 shares authorized, 861,998 shares issued and outstanding
$
12,930
Preferred Stock, $0.0001 par value, 5,000,000 shares authorized; 4,268 shares designated as Series C Preferred Stock, $0.0001 par value, 0 issued and outstanding at December 31, 2021; 5,775 shares designated as Series D Preferred Stock, $1,000 par value, 0 issued and outstanding at December 31, 2021; 15 shares designated as Series E Non-Convertible Preferred Stock, $0.0001 par value, 9 issued and outstanding at December 31, 2021
—
Additional paid-in capital
156,171,483
Retained earnings (deficit)
(98,287,890)
Total stockholders' equity
$
57,896,523
Unless otherwise stated
in this prospectus, the total number of shares of common stock outstanding as of the date of this prospectus and after this offering
is based on __________ shares outstanding as of __________ , 2022, assumes the sale of units based on an assumed public offering
price of $__________, the last reported sales price of our shares of common stock on the Nasdaq Capital Market on __________, 2022.
The total number of
shares of common stock outstanding as of the date of this prospectus and after this offering is based on 861,998 shares outstanding
as of December 31, 2021, and excludes the following other securities as of December 31, 2021:
24
•
281,832 shares of common stock issuable as of the date hereof upon the exercise of common stock outstanding warrants with a weighted average exercise price of $241 per share;
•
83 shares of common stock available for future issuance under the Company 2016 Equity Incentive Plan;
•
625 shares of common stock available for future issuance under the Company 2018 Equity Incentive Plan; and
•
1,354 shares of common stock issuable upon the exercise of outstanding stock options and RSUs.
Except as otherwise noted,
all information in this prospectus reflects and assumes (i) no sale of pre-funded units in this offering, which, if sold,
would reduce the number of units that we are offering on a one-for-one basis, (ii) no exercise of outstanding options issued
under our equity incentive plans, and (iii) no exercise of any warrants or pre-funded warrants issued in this offering (including
the Placement Agent Warrants).
DILUTION
If you invest in our common
stock in this offering, your ownership interest will be diluted immediately to the extent of the difference between the public
offering price per unit and the as adjusted, net tangible book value per share of common stock immediately after this offering.
Our net tangible
book value is the amount of our total tangible assets less our total liabilities. Our net tangible book value as of December
31, 2021 was $ 57.9 million, or approximately $67.17 per share. Our pro forma net tangible book value as of
December 31, 2021 was $62.1 million, or $72.04 per share of our common stock. Pro forma net tangible book value
represents the amount of our total tangible assets less our total liabilities as of December 31, 2021, after giving effect to
our receipt of net proceeds of $4.2 million from the issuance of 2,500 shares of Series F Convertible Preferred Stock
and 2,500 shares of Series G Preferred Stock in a registered direct offering on February 15, 2022. Pro forma net
tangible book value per share represents pro forma net tangible book value divided by the total number of shares
outstanding as of December 31, 2021, after giving effect to the pro forma adjustment described above.
After giving further effect
to the assumed sale of __________ shares of our common stock and warrants to purchase __________ shares of our common stock for
__________ per share at the public offering price of $ __________ per share and related warrant, the closing sale price per share
of our common stock on the Nasdaq Capital Market on ______, 2022, assuming no sale of pre-funded warrants in this offering and
no exercise of the warrants being offered in this offering and after deducting the Placement Agent fees and expenses and estimated
offering expenses payable by us, our as adjusted pro forma net tangible book value per share as of December 31, 2021, would have
been approximately $__________ million, or approximately $__________ per share. This represents an immediate increase in net tangible
book value per share of $__________ to existing stockholders and an immediate dilution of approximately $__________ per share to
new investors purchasing shares of our common stock in this offering.
Dilution per share to
new investors is determined by subtracting the pro forma, as adjusted, net tangible book value per share after this offering from
the public offering price per share and related warrant paid by new investors.
The following table illustrates
this per share dilution
(1)
:
Assumed public offering price per unit
$
[•]
Historical net tangible book value per share as of December 31, 2021
$
[•]
Pro forma net tangible book value per share (deficit) as of December 31, 2021
$
[•]
Increase in pro forma net tangible book value per share attributable to this offering
$
[•]
As adjusted pro forma net tangible book value per share after giving effect to this offering
$
[•]
Dilution in net tangible book value per share to new investors
$
[•]
25
The foregoing discussion
and table do not take into account further dilution to new investors that could occur upon the exercise of outstanding __________
warrants issued to an institutional investor on November 20, 2020, as amended, pursuant to a cashless exercise or Alternate Net
Number mechanism in the warrant. See "
Risk Factors – Investors in this offering will experience immediate and substantial
dilution in net tangible book value."
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 could result in further dilution to our stockholders.
(1)
Does not include:
•
83,334 shares of common stock issuable upon the conversion of 2,500 shares of Series F Convertible Preferred Stock.
•
83,334 shares of common stock issuable upon the conversion of 2,500 shares of Series G Convertible Preferred Stock.
•
281,832 shares of common stock issuable as of the date hereof upon the exercise of common stock outstanding warrants with a weighted average exercise price of $241 per share;
•
83 shares of common stock available for future issuance under the Company 2016 Equity Incentive Plan;
•
625 shares of common stock available for future issuance under the Company 2018 Equity Incentive Plan;
•
1,354 shares of common stock issuable upon the exercise of outstanding stock options and RSUs;
•
125,000 shares of common stock issuable upon the exercise of the common stock purchase warrants to be issued to the investors of the Preferred Stock at an exercise price of $37.65 per share;
•
shares of common stock issuable upon warrant exercised pursuant to the cashless Alternate Net Number mechanism contained in the warrant;
•
10,000 shares of common stock issuable upon the exercise of the placement agent warrants issued to the placement agent in our February 2022 direct offering for $37.50 per share;
•
__________ shares of common stock issuable upon exercise of the warrants included in this offering, at an exercise price of $________ per share;
•
___________ shares of common stock issuable upon exercise of the pre-funded warrants included in this offering, at an exercise price of $0.0001 per share; and
•
______________ shares of common stock issuable upon the exercise of the Placement Agent Warrants to be issued to the Placement Agent for $___________ per share in this offering.
Each $__________ increase
(decrease) in the assumed public offering price of $ __________ per unit, would increase (decrease) dilution per share to new investors
in this offering by $__________ , assuming that the aggregate number of units offered by us, as set forth on the cover of this
prospectus, remains the same and after deducting the Placement Agent fees and estimated offering expenses payable by us.
To the extent that any
shares of preferred stock converts into shares of common stock or outstanding options or warrants are exercised, 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.
26
DESCRIPTION OF SECURITIES
The following description
summarizes certain terms of our capital stock, certain provisions of our Articles of Incorporation and bylaws and certain terms
of the warrants and pre-funded warrants included in this offering. This summary does not purport to be complete and is qualified
in its entirety by the provisions of our certificate of incorporation and bylaws and the provisions of the warrants and the pre-funded
warrants, copies of which are filed with the SEC as exhibits to the Registration Statement on Form S-1 of which this prospectus
forms a part, and to the applicable provisions of Nevada law.
We are offering (i) __________
units, each unit consisting of one share of common stock and one warrant to purchase one share of common stock, and (ii) __________
pre-funded units, each pre-funded unit consisting of one share of common stock and one pre-funded warrant to purchase
one share of common stock.
Each share of common stock
and accompanying warrant included in each unit will be immediately separable upon issuance and will be issued separately, and each
pre-funded warrant to purchase one share of common stock and the accompanying warrant included in each pre-funded unit will be
immediately separable upon issuance and will be issued separately. The units and pre-funded units will not be issued or certificated.
We are also registering the shares of common stock included in the units and the shares of common stock issuable from time to time
upon exercise of the pre-funded warrants included in pre-funded units and warrants included in the units and the pre-funded units
offered hereby.
Authorized and Outstanding Capital Stock
Our authorized capital
stock presently consists of 200,000,000 shares of common stock, par value $0.0001 per share, and 5,000,000 shares of "blank
check" preferred stock, par value $0.0001 per share. As of __________ , 2022, we had __________ shares of common stock issued
and outstanding, and nine shares of Series E Non-Convertible Preferred Stock, 2,500 shares of Series F Convertible Preferred Stock
and 2,500 shares of Series G Convertible Preferred stock issued and outstanding.
27
Common Stock
Voting
Holders of shares of the
common stock are entitled to one vote for each share held of record on matters properly submitted to a vote of our stockholders.
Stockholders are not entitled to vote cumulatively for the election of directors.
Dividends
Subject to the dividend
rights of the holders of any outstanding series of preferred stock, holders of shares of common stock will be entitled to receive
ratably such dividends, if any, when, as, and if declared by our Board out of the Company's assets or funds legally available
for such dividends or distributions.
Liquidation and Distribution
In the event of any liquidation,
dissolution, or winding up of the Company's affairs, holders of the common stock would be entitled to share ratably in the
Company's assets that are legally available for distribution to its stockholders. If the Company has any preferred stock
outstanding at such time, holders of the preferred stock may be entitled to distribution preferences, liquidation preferences,
or both. In such case, the Company must pay the applicable distributions to the holders of its preferred stock before it may pay
distributions to the holders of common stock.
Conversion, Redemption, and Preemptive
Rights
Holders of the common
stock have no preemptive, subscription, redemption or conversion rights.
Sinking Fund Provisions
There are no sinking fund
provisions applicable to the common stock.
Preferred
Stock
Pursuant
to our articles of incorporation, our board of directors has the authority, without further action by the stockholders, to issue
from time to time up to 5,000,000 shares of preferred stock in one or more series. Our board of directors may designate the rights,
preferences, privileges and restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, redemption
rights, liquidation
preference
, sinking fund terms and the number of shares constituting
any series or the designation of any series. The issuance of preferred stock could have the effect of restricting dividends on
the common stock, diluting the voting power of the common stock, impairing the liquidation rights of the common stock or delaying,
deterring or preventing a change in control. Such issuance could have the effect of decreasing the market price of the common stock.
We currently have no plans to issue any shares of preferred stock.
Series E Non-Convertible Preferred
Stock
The holders of Series
E Non-Convertible Preferred Stock ("Series E Preferred Stock") are entitled to vote on all matters subject to a vote
or written consent of the holders of the Company's common stock and all capital stock of the Company having voting rights,
a number of votes of each one share equal to 1% of the total number of votes that the issued and outstanding shares of common stock
and all other voting securities of the Company as of any such date of determination, voting together as a single class, on a fully
diluted basis, subject to applicable law and a certain blocker clause contained in the Series E Certificate of Designation, as
discussed below.
Pursuant to the blocker
clause in the Series E Certificate of Designation, the voting power of every holder of the Series E Preferred Stock together with
such holder's affiliates and Attribution Parties, together with any and all securities of the Company owned by such parties,
is limited to 4.99% of the voting power of the Company's outstanding capital stock. The term "Attribution Parties"
is defined in the Series E Certificate of Designation to consist of the following persons and entities: (i) any investment vehicle,
including, any funds, feeder funds, or managed accounts, currently, or from time to time after the date the shares of Series E
Preferred Stock are issued to the holder, directly or indirectly managed or advised by the holder's investment manager or
any of its affiliates or principals, (ii) any direct or indirect affiliates of the holder or any of the foregoing, (iii) any person
acting or who could be deemed to be acting as a group together with the holder or any of the foregoing; and (iv) any other persons
whose beneficial ownership of the Company's voting securities would or could be aggregated with the holder's and the
other Attribution Parties for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended.
28
Series F Convertible Preferred
Stock
Dividends
The holders of Series
F Convertible Preferred Stock will be entitled to dividends, on an as-if converted basis, equal to and in the same form as dividends
actually paid on shares of common stock, when and if actually paid.
Voting
The Series F Convertible
Preferred Stock has no voting rights, except:
•
the right to vote, with the holders of
common stock, as a single class, with each share of Series F Convertible Preferred Stock entitled to 3,998 votes (pre-split) per
share, on the Reverse Stock Split at the special meeting of the Company's stockholder held on April 15, 2022; and
•
otherwise, as long as any shares of Series F Convertible Preferred Stock are outstanding, the holders of the Series F Convertible Preferred Stock will be entitled to approve, by a majority vote of the then outstanding shares of Series F Convertible Preferred Stock if the Company seeks to (a) alter or change adversely the powers, preferences or rights given to the Series F Convertible Preferred Stock or alter or amend the Certificate of Designation governing the Series F Convertible Preferred Stock, (b) amend the Articles of Incorporation, as amended or other charter documents in any manner that adversely affects any rights of the holders of the Series F Convertible Preferred Stock, (c) increase the number of authorized shares of Series F Convertible Preferred Stock, or (d) enter into any agreement with respect to any of the foregoing.
Liquidation
Upon any liquidation,
dissolution or winding-up of the Company, whether voluntary or involuntary, or a Liquidation, the then holders of the Series F
Convertible Preferred Stock shall be entitled to receive out of the assets, whether capital or surplus, of the Company the same
amount that a holder of common stock would receive if the Series F Convertible Preferred Stock were fully converted (disregarding
for such purposes any conversion limitations hereunder) to common stock which amounts shall be paid pari passu with all holders
of common stock.
Conversion
The Series F Convertible
Preferred Stock is convertible into common stock at any time after the date of issuance. The conversion rate, subject to adjustment
as set forth in the Certificate of Designation governing the Series F Convertible Preferred Stock, is determined by dividing the
stated value of the Series F Convertible Preferred Stock by $30 (the "Conversion Price"). The Conversion Price can
be adjusted as set forth in the Certificate of Designation governing the Series F Convertible Preferred Stock for stock dividends
and stock splits or the occurrence of a fundamental transaction (as defined below). Upon conversion the shares of Series F Convertible
Preferred Stock shall resume the status of authorized but unissued shares of preferred stock of the Company.
Optional Conversion
The Series F Convertible
Preferred Stock can be converted at the option of the holder at any time and from time to time after the date of issuance.
29
Beneficial Ownership Limitation
The Series F Convertible
Preferred Stock cannot be converted to common stock if the holder and its affiliates would beneficially own more than 4.99% or
9.99% at the election of the holder of the outstanding common stock. However, any holder may increase or decrease such percentage
to any other percentage not in excess of 9.99% upon notice to us, provided that any increase in this limitation will not be effective
until 61 days after such notice from the holder to us and such increase or decrease will apply only to the holder providing such
notice.
Preemptive Rights
No holders of Series F
Convertible Preferred Stock will, as holders of Series F Convertible Preferred Stock, have any preemptive rights to purchase or
subscribe for our common stock or any of our other securities.
Redemption
The Series F Preferred Stock are not redeemable
by the Company.
Series G Convertible Preferred
Stock
Dividends
The holders of Series
G Convertible Preferred Stock will be entitled to dividends, on an as-if converted basis, equal to and in the same form as dividends
actually paid on shares of common stock, when and if actually paid.
Voting
The Series G Convertible
Preferred Stock has no voting rights, except:
•
the right to vote, with the holders of common stock, as a single
class, with each share of Series G Convertible Preferred Stock entitled to 500,000 votes (pre-split) per share, on the Reverse
Stock Split at the special meeting of the Company's stockholder held on April 15, 2022; and
•
otherwise, as long as any shares of Series G Convertible Preferred Stock are outstanding, the holders of the Series G Convertible Preferred Stock will be entitled to approve, by a majority vote of the then outstanding shares of Series G Convertible Preferred Stock if the Company seeks to (a) alter or change adversely the powers, preferences or rights given to the Series G Convertible Preferred Stock or alter or amend the Certificate of Designation governing the Series G Convertible Preferred Stock, (b) amend the Articles of Incorporation, as amended or other charter documents in any manner that adversely affects any rights of the holders of the Series G Convertible Preferred Stock, (c) increase the number of authorized shares of Series G Convertible Preferred Stock, or (d) enter into any agreement with respect to any of the foregoing.
Liquidation
Upon any liquidation,
dissolution or winding-up of the Company, whether voluntary or involuntary, or a Liquidation, the then holders of the Series G
Convertible Preferred Stock shall be entitled to receive out of the assets, whether capital or surplus, of the Company the same
amount that a holder of common stock would receive if the Series G Convertible Preferred Stock were fully converted (disregarding
for such purposes any conversion limitations hereunder) to common stock which amounts shall be paid pari passu with all holders
of common stock.
Conversion
The Series G Convertible
Preferred Stock is convertible into common stock after the date of issuance. The conversion rate, subject to adjustment as set
forth in the Certificate of Designation governing the Series G Convertible Preferred Stock, is determined by dividing the stated
value of the Series G Convertible Preferred Stock by $30 (the "Conversion Price"). The Conversion Price can be adjusted
as set forth in the Certificate of Designation governing the Series G Convertible Preferred Stock for stock dividends and stock
splits or the occurrence of a fundamental transaction (as defined below). Upon conversion the shares of Series G Convertible Preferred
Stock shall resume the status of authorized but unissued shares of preferred stock of the Company.
30
Beneficial Ownership Limitation
The Series G Convertible
Preferred Stock cannot be converted to common stock if the holder and its affiliates would beneficially own more than 4.99% or
9.99% at the election of the holder of the outstanding common stock. However, any holder may increase or decrease such percentage
to any other percentage not in excess of 9.99% upon notice to us, provided that any increase in this limitation will not be effective
until 61 days after such notice from the holder to us and such increase or decrease will apply only to the holder providing such
notice.
Preemptive Rights
No holders of Series G
Convertible Preferred Stock will, as holders of Series G Convertible Preferred Stock, have any preemptive rights to purchase or
subscribe for our common stock or any of our other securities.
Redemption
The Series G Preferred
Stock are not redeemable by the Company.
Warrants
Series A Warrants
In our November 2018 initial
public offering and concurrent private placement, we issued units which included a total of 4,875 of Series A Warrants.
Exercisability
The warrants are exercisable
at any time after their original issuance and at any time up to the date that is five years after their original issuance for the
Series A Warrants The warrants will be exercisable, at the option of each holder, in whole or in part by delivering to us a duly
executed exercise notice and, at any time a registration statement registering the issuance of the shares of common stock underlying
the warrants under the Securities Act is effective and available for the issuance of such shares, or an exemption from registration
under the Securities Act is available for the issuance of such shares, by payment in full in immediately available funds for the
number of shares of common stock purchased upon such exercise. If a registration statement registering the issuance of the shares
of common stock underlying the warrants under the Securities Act is not effective or available and an exemption from registration
under the Securities Act is not available for the issuance of such shares, the holder may, in its sole discretion, elect to exercise
the warrant through a cashless exercise, in which case the holder would receive upon such exercise the net number of shares of
common stock determined according to the formula set forth in the warrant. No fractional shares of common stock will be issued
in connection with the exercise of a warrant. In lieu of fractional shares, we will pay the holder an amount in cash equal to the
fractional amount multiplied by the exercise price
Exercise Limitation
A holder will not have
the right to exercise any portion of the warrant if the holder (together with its affiliates) would beneficially own in excess
of 9.99% of the number of shares of our common stock outstanding immediately after giving effect to the exercise, as such percentage
ownership is determined in accordance with the terms of the warrants.
Exercise Price
The weighted average
exercise price per whole share of common stock purchasable upon exercise of the warrants is $7,758 per share for the Series A
Warrants. The exercise price is subject to appropriate adjustment in the event of certain stock dividends and distributions,
stock splits, stock combinations, reclassifications or similar events affecting our common stock and also upon any
distributions of assets, including cash, stock or other property to our stockholders.
Transferability
Subject to applicable
laws, the warrants may be offered for sale, sold, transferred or assigned without our consent.
31
Fundamental Transactions
In the event of a fundamental
transaction, as described in the warrants and generally including any reorganization, recapitalization or reclassification of our
common stock, the sale, transfer or other disposition of all or substantially all of our properties or assets, our consolidation
or merger with or into another person, the acquisition of more than 50% of our outstanding common stock, or any person or group
becoming the beneficial owner of 50% of the voting power represented by our outstanding common stock, the holders of the warrants
are entitled to receive upon exercise of the warrants the kind and amount of securities, cash or other property that the holders
would have received had they exercised the warrants immediately prior to such fundamental transaction.
Rights as a Stockholder
Except as otherwise provided
in the warrants or by virtue of such holder's ownership of shares of our common stock, the holder of a warrant does not have
the rights or privileges of a holder of our common stock, including any voting rights, until the holder exercises the warrant.
Governing Law
The Series A Warrants
and the warrant agency agreement are governed by New York law.
Warrants Offered in this Offering
The following description
of the warrants we are offering is a summary and is qualified in its entirety by reference to the provisions of the warrant, the
form of which is filed as an exhibit to the registration statement of which this prospectus forms a part.
Duration and Exercise
Price
.
Each warrant offered hereby will have an initial exercise price per share equal to $__________ The warrants
will be immediately exercisable and will expire on the __________ anniversary of the original issuance date. The exercise price
and number of shares of common stock issuable upon exercise is subject to appropriate adjustment in the event of stock dividends,
stock splits, reorganizations or similar events affecting our shares of common stock and the exercise price. The warrants will
be issued in certificated form.
Exercisability
. The
warrants will be exercisable, at the option of the holder, in whole or in part, by delivering to us a duly executed exercise notice
accompanied by payment in full for the number of shares of common stock purchased upon such exercise (except in the case of a cashless
exercise, as discussed below). A holder (together with its affiliates) may not exercise any portion of the warrant to the extent
that the holder would own more than 4.99% (or, at the election of the holder, 9.99%) of the outstanding shares of common stock
immediately after exercise. However, upon notice from the holder to us, the holder may decrease or increase the holder's
beneficial ownership limitation, which may not exceed 9.99% of the number of outstanding shares of common stock immediately after
giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the warrants, provided
that any increase in the beneficial ownership limitation will not take effect until 61 days following notice to us. Purchasers
in this offering may also elect, prior to the issuance of the warrants, to have the initial exercise limitation set at 9.99% of
our outstanding shares of common stock. No fractional shares will be issued in connection with the exercise of a warrant. In lieu
of fractional shares, we will either pay the holder an amount in cash equal to the fractional amount multiplied by the exercise
price or round down to the next whole share.
Cashless Exercise
.
If,
at the time a holder exercises its warrants, a registration statement registering the issuance of the shares of common stock underlying
the warrants under the Securities Act is not then effective or available and an exemption from registration under the Securities
Act is not available for the issuance of such shares, then in lieu of making the cash payment otherwise contemplated to be made
to us upon such exercise in payment of the aggregate exercise price, the holder may elect instead to receive upon such exercise
(either in whole or in part) the net number of shares of common stock determined according to a formula set forth in the common
warrants.
32
Transferability
.
Subject
to applicable laws, a warrant may be transferred at the option of the holder upon surrender of the warrant to us together with
the appropriate instruments of transfer.
Exchange Listing
.
There is no trading market available for the warrants on any securities exchange or nationally recognized trading system. We do
not intend to list the warrants on any securities exchange or nationally recognized trading system.
Right as a Stockholder
.
Except
as otherwise provided in the warrants or by virtue of such holder's ownership of our shares of common stock, the holders
of the warrants do not have the rights or privileges of holders of our shares of common stock, including any voting rights, until
they exercise their warrants.
Fundamental Transaction
.
In
the event of a fundamental transaction, as described in the warrants and generally including any reorganization, recapitalization
or reclassification of our shares of common stock, the sale, transfer or other disposition of all or substantially all of our properties
or assets, our consolidation or merger with or into another person, the acquisition of more than 50% of our outstanding shares
of common stock, or any person or group becoming the beneficial owner of 50% of the voting power represented by our outstanding
shares of common stock, the holders of the warrants will be entitled to receive upon exercise of the pre-funded warrants the kind
and amount of securities, cash or other property that the holders would have received had they exercised the warrants immediately
prior to such fundamental transaction. Additionally, as more fully described in the warrants, in the event of a fundamental transaction
(as defined in the warrants), the holders of the warrants will be entitled to receive consideration in an amount in cash equal
to the Black Scholes value of the warrants determined according to a formula set forth in the warrants, provided, however, that,
if the fundamental transaction is not within our control, including not approved by our board of directors, then the holder shall
only be entitled to receive the same type or form of consideration (and in the same proportion), at the Black Scholes value of
the unexercised portion of the warrant, that is being offered and paid to the holders of our common stock in connection with the
fundamental transaction.
Pre-Funded Warrants Offered in
this Offering
The following description
of the pre-funded warrants we are offering is a summary and is qualified in its entirety by reference to the provisions of the
pre-funded warrant, the form of which is filed as an exhibit to the registration statement of which this prospectus forms a part.
Duration and Exercise
Price
.
Each pre-funded warrant offered hereby will have an initial exercise price per share equal to $0.0001. The
pre-funded warrants will be immediately exercisable and may be exercised at any time until the pre-funded warrants are exercised
in full. The exercise price and number of shares of common stock issuable upon exercise is subject to appropriate adjustment in
the event of stock dividends, stock splits, reorganizations or similar events affecting our shares of common stock and the exercise
price. The pre-funded warrants will be issued in certificate form. The pre-funded warrants will be issued in certificated
form.
Exercisability
.
The pre-funded warrants will be exercisable, at the option of the holder, in whole or in part, by delivering to us a duly executed
exercise notice accompanied by payment in full for the number of shares of common stock purchased upon such exercise (except in
the case of a cashless exercise as discussed below). Purchasers of the pre-funded warrants in this offering may elect to deliver
their exercise notice following the pricing of the offering and prior to the issuance of the pre-funded warrants at closing to
have their pre-funded warrants exercised immediately upon issuance and receive shares of common stock underlying the pre-funded
warrants upon closing of this offering. A holder (together with its affiliates) may not exercise any portion of the pre-funded
warrant to the extent that the holder would own more than 4.99% (or, at the election of the holder, 9.99%) of the outstanding shares
of common stock immediately after exercise. However, upon notice from the holder to us, the holder may decrease or increase the
beneficial ownership limitation, which may not exceed 9.99% of the number of shares of common stock outstanding immediately after
giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the pre-funded warrants,
provided that any increase in the beneficial ownership limitation will not take effect until 61 days following notice to us. No
fractional shares of common stock will be issued in connection with the exercise of a pre-funded warrant. In lieu of fractional
shares, we will either pay the holder an amount in cash equal to the fractional amount multiplied by the exercise price or round
down to the next whole share.
33
Cashless Exercise
.
At
any time, in lieu of making the cash payment otherwise contemplated to be made to us upon such exercise, the holder may elect instead
to receive upon such exercise (either in whole or in part) the net number of the shares of common stock determined according to
a formula set forth in the pre-funded warrants.
Transferability
.
Subject
to applicable laws, a pre-funded warrant may be transferred at the option of the holder upon surrender of the pre-funded warrant
to us together with the appropriate instruments of transfer.
Exchange Listing
.
There is no trading market available for the pre-funded warrants on any securities exchange or nationally recognized trading system.
We do not intend to list the pre-funded warrants on any securities exchange or nationally recognized trading system.
Right as a Shareholder
.
Except
as otherwise provided in the pre-funded warrants or by virtue of such holder's ownership of our shares of common stock, the
holders of the pre-funded warrants do not have the rights or privileges of holders of our shares of common stock, including any
voting rights, until they exercise their pre-funded warrants.
Fundamental Transaction
.
In
the event of a fundamental transaction, as described in the pre-funded warrants and generally including any reorganization, recapitalization
or reclassification of our shares of common stock, the sale, transfer or other disposition of all or substantially all of our properties
or assets, our consolidation or merger with or into another person, the acquisition of more than 50% of our outstanding shares
of common stock, or any person or group becoming the beneficial owner of 50% of the voting power represented by our outstanding
shares of common stock, the holders of the pre-funded warrants will be entitled to receive upon exercise of the pre-funded warrants
the kind and amount of securities, cash or other property that the holders would have received had they exercised the pre-funded
warrants immediately prior to such fundamental transaction.
Anti-Takeover Effects of Nevada Law and
the Articles of Incorporation and Bylaws
Certain provisions of
the Articles of Incorporation and Bylaws, and certain provisions of the NRS could make our acquisition by a third party, a change
in our incumbent management, or a similar change of control more difficult. These provisions, which are summarized below, are likely
to reduce our vulnerability to an unsolicited proposal for the restructuring or sale of all or substantially all of our assets
or an unsolicited takeover attempt. The summary of the provisions set forth below does not purport to be complete and is qualified
in its entirety by reference to the Articles of Incorporation and the Bylaws and the relevant provisions of the NRS.
Authorized but Unissued Shares
Our authorized but unissued
shares of common stock and preferred stock are available for future issuance, subject to any limitations imposed by the listing
standards of the Nasdaq Capital Market. These additional shares may be used for a variety of corporate finance transactions, acquisitions
and employee benefit plans. The existence of authorized but unissued and unreserved common stock and preferred stock could make
it more difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise.
Our authorized capital
includes "blank check." Our Board has the authority to issue preferred stock in one or more class or series and determine
the price, designation, rights, preferences, privileges, restrictions and conditions, including voting and dividend rights, of
those shares without any further vote or action by stockholders. The rights of the holders of common stock will be subject to,
and may be adversely affected by, the rights of holders of any preferred stock that may be issued in the future. The issuance of
additional preferred stock, while providing desirable flexibility in connection with possible financings and acquisitions and other
corporate purposes, could make it more difficult for a third party to acquire a majority of the voting power of our outstanding
voting securities, which could deprive our holders of common stock of a premium that they might otherwise realize in connection
with a proposed acquisition of our Company.
Action by Written Consent
Our Bylaws provide that
any action required or permitted by law, the Articles of Incorporation, or Bylaws to be taken at a meeting of the stockholders
of the Company may be taken without a meeting if a consent or consents in writing, setting forth the action so taken, shall be
signed by stockholders holding at least a majority of the voting power; provided that if a different proportion of voting power
is required for such an action at a meeting, then that proportion of written consents is required.
34
Advance Notice Requirements
Stockholders wishing to
nominate persons for election to our Board at a meeting or to propose any business to be considered by our stockholders at a meeting
must comply with certain advance notice and other requirements set forth in our Bylaws and Rule 14a-8 of the Exchange Act.
Special Meetings
Our Bylaws provide that
special meetings of stockholders may only be called by the President or Chief Executive Officer. Business transacted at all special
meetings shall be confined to the purposes stated in the notice of the meeting unless all stockholders entitled to vote are present
and consent.
Board Vacancies
Our Bylaws provide that
any vacancy on our Board, howsoever resulting, may be filled by a majority vote of the remaining directors.
Removal of Directors
Our Bylaws provide that
any director may be removed either for or without cause at any special meeting of stockholders by the affirmative vote of at least
two-thirds of the voting power of the issued and outstanding stock entitled to vote; provided, however, that notice of intention
to act upon such matter shall have been given in the notice calling such meeting.
Right to Alter, Amend or Repeal Bylaws
Our Bylaws provide that
they may be altered, amended or repealed at any meeting of the Board at which a quorum is present, by the affirmative vote of a
majority of the Directors present at such meeting.
Indemnification of Officers and Directors
and Insurance
Our Bylaws provide for
limitation of liability of our directors and for indemnification of our directors and officers to the fullest extent permitted
under Nevada law. Our directors and officers may be liable for a breach or failure to perform their duties in accordance with Nevada
law only if their breach or failure to perform constitutes gross negligence, willful misconduct or intentional harm on our Company
or our stockholders. Our directors may not be personally liable for monetary damages for action taken or failure to take action
as a director except in specific instances established by Nevada law.
In accordance with Nevada
law, we may generally indemnify a director or officer against liability incurred in a proceeding if he or she acted in good faith
and believed that his or her conduct was in our best interest and that he or she had no reason to believe his or her conduct was
unlawful. We may not indemnify a director or officer if the person was adjudged liable to us or in the event it is adjudicated
that the director or officer received an improper personal benefit.
Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to
the foregoing provisions, or otherwise, we have been advised that in the opinion of the U.S. Securities and Exchange Commission,
such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.
Nevada Anti-Takeover Statutes
The NRS contains provisions
restricting the ability of a Nevada corporation to engage in business combinations with an interested stockholder. Under the NRS,
except under certain circumstances, business combinations with interested stockholders are not permitted for a period of two years
following the date such stockholder becomes an interested stockholder. The NRS defines an interested stockholder, generally, as
a person who is the beneficial owner, directly or indirectly, of 10% of the outstanding shares of a Nevada corporation. In addition,
the NRS generally disallows the exercise of voting rights with respect to "control shares" of an "issuing corporation"
held by an "acquiring person," unless such voting rights are conferred by a majority vote of the disinterested stockholders.
"Control shares" are those outstanding voting shares of an issuing corporation which an acquiring person and those
persons acting in association with an acquiring person (i) acquire or offer to acquire in an acquisition of a controlling interest
and (ii) acquire within 90 days immediately preceding the date when the acquiring person became an acquiring person. An "issuing
corporation" is a corporation organized in Nevada which has two hundred or more stockholders, at least one hundred of whom
are stockholders of record and residents of Nevada, and which does business in Nevada directly or through an affiliated corporation.
The NRS also permits directors to resist a change or potential change in control of the corporation if the directors determine
that the change or potential change is opposed to or not in the best interest of the corporation.
35
Award Plans
The 2016 Equity Incentive Plan
The 2016 Equity Incentive
Plan was adopted by the Board and approved by the stockholders on July 6, 2016. The awards per the 2016 Plan may be granted through
July 5, 2026, to the Company's employees, consultants, directors, and non-employee directors provided such consultants, directors,
and non-employee directors render good faith services not in connection with the offer and sale of securities in a capital-raising
transaction. The Awards issuable under the 2016 Plan consist of ISOs, NQSOs, restricted stock awards, stock bonus awards, SARs,
RSUs, performance awards, and other share-based awards. The Board shall administer the 2016 Plan unless and until the Board delegates
administration of the 2016 Plan to a Committee.
The initial number of
shares of common stock authorized and reserved for issuance under the 2016 Plan was 12 million. The amount was subsequently reduced
to 2 million due to the Company's one-for-six reverse stock split on October 5, 2016, then to 1 million for the Company's
1-for-2 reverse stock split on September 3, 2018, then to 100,000 shares for the Company's 1-for-10 reverse stock split on
April 15, 2020, and then to 83 per 02.03d shares due to the Company's reverse stock split of 1-for-150 on April 25, 2022.
The 2018 Equity Incentive Plan
On July 1, 2018, the Board
and the stockholders of the Company approved and adopted the Company's 2018 Equity Incentive Plan (the "2018 Plan").
The 2018 Plan supplements, and does not replace, the existing 2016 Equity Incentive Plan. Awards may be granted under the 2018
Plan through June 30, 2023 to the Company's employees, officers, consultants, and non-employee directors.
The Awards issuable under
the 2018 Plan consist of ISOs, NQSOs, restricted stock awards, stock bonus awards, SARs, RSUs, performance awards, and other share-based
awards. The Board shall administer the 2018 Plan unless and until the Board delegates administration of the 2018 Plan to a Committee.
The initial number of
shares of common stock authorized and reserved for issuance under the 2018 Plan was 2 million. The amount was subsequently reduced
to 1 million due to the Company's 1-for-2 reverse stock split on September 3, 2018. On April 12, 2019, the Board and
stockholders approved to increase the number of shares to 20 million and then on February 14, 2022, to 35 million. The amount was
later reduced to 3.5 million as a result to the Company's 1-for-10 reverse stock split on April 15, 2020 and then to 625 per
02.03d shares due to the Company's reverse stock split of 1-for-150 on April 25, 2022.
Options
As of May 13, 2022,
the Company had 1,354 stock options and RSUs issued and outstanding.
Warrants
As of May 13, 2022, the Company had 416,832 warrants issued and
outstanding.
Nevada Business Combination Statutes
The "business combination"
provisions of Sections 78.411 to 78.444, inclusive, of the Nevada Revised Statutes, (the "NRS"), generally prohibit
a Nevada corporation with at least 200 stockholders of record from engaging in various "combination" transactions with
any interested stockholder for a period of two years after the date of the transaction in which the person became an interested
stockholder, unless the transaction is approved by the Board prior to the date the interested stockholder obtained such status
or the combination is approved by the Board and thereafter is approved at a meeting of the stockholders by the affirmative vote
of stockholders representing at least 60% of the outstanding voting power held by disinterested stockholders, and extends beyond
the expiration of the two-year period, unless:
36
•
the combination was approved by the Board prior to the person becoming an interested stockholder or the transaction by which the person first became an interested stockholder was approved by the Board before the person became an interested stockholder or the combination is later approved by 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 two years immediately preceding the date of the announcement of the combination or in the transaction in which it became an interested stockholder, whichever is higher, (b) the market value per share of common stock on the date of announcement of the combination and the date the interested stockholder acquired the shares, whichever is higher, or (c) for holders of preferred stock, the highest liquidation value of the preferred stock, if it is higher.
A "combination"
is generally defined to include mergers or consolidations 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% or more of the aggregate market value of the assets of the corporation, (b) an aggregate market value equal to 5% or
more of the aggregate market value of all outstanding voting shares of the corporation, (c) more than 10% of the earning power
or net income of the corporation, and (d) certain other transactions with an interested stockholder or an affiliate or associate
of an interested stockholder.
In general, an "interested
stockholder" is a person who, together with affiliates and associates, beneficially owns (or within two years, did own) 10%
or more of the voting power of the outstanding voting shares of a corporation. The statute could prohibit or delay mergers or other
takeover or change in control attempts and, accordingly, may discourage attempts to acquire us even though such a transaction may
offer our stockholders the opportunity to sell their stock at a price above the prevailing market price.
Transfer Agent and Registrar
Our transfer agent and
registrar is Vstock Transfer, LLC located at 18 Lafayette Pl, Woodmere, New York 11598. Their telephone number is (212) 828-8436.
Nasdaq Capital Market
Our common stock and Series
A Warrants are listed on the Nasdaq Capital Market under the symbol "TBLT" and "TBLTW," respectively.
Penny Stock Regulation
The SEC has adopted regulations
which generally define "
penny stock
" to be any equity security that has a market price of less than Five Dollars
($5.00) per share or an exercise price of less than Five Dollars ($5.00) per share. Such securities are subject to rules that impose
additional sales practice requirements on broker-dealers who sell them. For transactions covered by these rules, the broker-dealer
must make a special suitability determination for the purchaser of such securities and have received the purchaser's written
consent to the transaction prior to the purchase. Additionally, for any transaction involving a penny stock, unless exempt, the
rules require the delivery, prior to the transaction, of a disclosure schedule prepared by the SEC relating to the penny stock
market. The broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative,
current quotations for the securities and, if the broker-dealer is the sole market maker, the broker-dealer must disclose this
fact and the broker-dealer's presumed control over the market. Finally, among other requirements, monthly statements must
be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny
stocks. As our common stock immediately following this offering may be subject to such penny stock rules, purchasers in this offering
will in all likelihood find it more difficult to sell their common stock shares in the secondary market.
37
Dividend Policy
To date we have never
declared a dividend for our common stock. We currently intend to retain future earnings, if any, to finance the expansion of our
business and for general corporate purposes. We cannot assure you that we will distribute any cash in the future. Our cash distribution
policy is within the discretion of our Board and will depend upon various factors, including our results of operations, financial
condition, capital requirements and investment opportunities.
MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES
TO
NON-U.S. HOLDERS
You are urged to
consult your tax advisor 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 common stock, warrants or pre-funded warrants 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.
38
PLAN OF DISTRIBUTION
Pursuant to an engagement
agreement, dated April 13, 2022, we have engaged H.C. Wainwright & Co., LLC, or the Placement Agent, to act as our exclusive
placement agent to solicit offers to purchase the securities offered pursuant to this prospectus on a reasonable best efforts basis.
The engagement agreement does not give rise to any commitment by the Placement Agent to purchase any of our securities, and the
Placement Agent will have no authority to bind us by virtue of the engagement agreement. The Placement Agent is not purchasing
or selling any of the securities offered by us under this prospectus, nor is it required to arrange for the purchase or sale of
any specific number or dollar amount of securities. The Placement Agent has agreed to use reasonable best efforts to arrange for
the sale of the securities by us. The Placement Agent does not guarantee that it will be able to raise new capital in any prospective
offering. The Placement Agent may engage sub-agents or selected dealers to assist with the offering.
We will enter into a securities
purchase agreement directly with institutional investors, at such investor's option, which purchase our securities in this
offering. Investors which do not enter into a securities purchase agreement shall rely solely on this prospectus in connection
with the purchase of our securities in this offering.
We will deliver the securities
being issued to the investors upon receipt of investor funds for the purchase of the securities offered pursuant to this prospectus.
We expect to deliver the securities being offered pursuant to this prospectus on or about ____________, 2022. There is no minimum
number of securities or amount of proceeds that is a condition to closing of this offering.
Fees and Expenses
The following table shows
the per unit and per pre-funded unit and total Placement Agent fees we will pay in connection with the sale of the securities in
this offering.
Per Unit
Per Pre-Funded
Unit
Placement Agent Fees
$
$
Total
$
$
We have agreed to pay
the Placement Agent a cash fee equal to 7% of the gross proceeds raised in this offering and a management fee equal to 0.5% of
the gross proceeds raised in this offering. In addition, we have agreed to reimburse the Placement Agent for its non-accountable
expenses in the amount of $50,000, for its legal fees and expenses and other out-of-pocket expenses in an amount up to $100,000
and for its clearing expenses in the amount of $15,950. We estimate the total offering expenses of this offering that will be payable
by us, excluding the Placement Agent fees and expenses, will be approximately $__________ .
Placement Agent Warrants
In addition, we have agreed
to issue to the Placement Agent or its designees warrants to purchase up to _____ shares of common stock (which represents 6% of
the aggregate number of shares of shares of common stock issued in this offering and issuable upon the exercise of the pre-funded
warrants issued in this offering) with an exercise price of $____ per share (representing 125% of the public offering price per
share) and exercisable for five years from the date of the commencement of sales in this offering (the "Placement Agent Warrants").
The Placement Agent Warrants are registered on the registration statement of which this prospectus is a part. The form of the Placement
Agent Warrant has been included as an exhibit to this registration statement of which this prospectus forms a part.
Tail
We
have also agreed to pay the Placement Agent
a tail fee equal to the cash and
warrant compensation in this offering, if any investor, who was contacted or introduced to us by the Placement Agent during the
term of its engagement, provides us with capital in any public or private offering or other financing or capital raising transaction
during the 6-month period following expiration or termination of our engagement of the Placement Agent.
39
Right
of First Refusal
We have granted to the
Placement Agent the right to act as sole book-runner, sole manager, sole placement agent and/or sole agent, for any of our future
public and private equity and debt offerings, including all equity linked financings, or if we finance or refinance any indebtedness,
during the six-month period following the consummation of this offering.
Lock-up Agreements
We and each of our officers
and directors have agreed with the Placement Agent to be subject to a lock-up period of 60 days following the date of closing of
the offering pursuant to this prospectus. This means that, during the applicable lock-up period, we and such persons may not offer
for sale, contract to sell, sell, distribute, grant any option, right or warrant to purchase, pledge, hypothecate or otherwise
dispose of, directly or indirectly, any of our shares of common stock or any securities convertible into, or exercisable or exchangeable
for, shares of common stock, subject to customary exceptions. The Placement Agent may waive the terms of these lock-up agreements
in its sole discretion and without notice. In addition, we have agreed to not issue any securities that are subject to a price
reset based on the trading prices of our common stock or upon a specified or contingent event in the future or enter into any
agreement to issue securities at a future determined price for a period of one year following the closing date of this offering,
subject to an exception. The Placement Agent may waive this prohibition in its sole discretion and without notice.
Regulation M
The Placement Agent may
be deemed to be an underwriter within the meaning of Section 2(a)(11) of the Securities Act, and any commissions received by it
and any profit realized on the resale of the securities sold by it while acting as principal might be deemed to be underwriting
discounts or commissions under the Securities Act. As an underwriter, the Placement Agent would be required to comply with the
requirements of the Securities Act and the Exchange Act, including, without limitation, Rule 10b-5 and Regulation M under the Exchange
Act. These rules and regulations may limit the timing of purchases and sales of our securities by the Placement Agent acting as
principal. Under these rules and regulations, the Placement Agent (i) may not engage in any stabilization activity in connection
with our securities and (ii) may not bid for or purchase any of our securities or attempt to induce any person to purchase any
of our securities, other than as permitted under the Exchange Act, until it has completed its participation in the distribution.
Indemnification
We
have agreed to indemnify the Placement Agent against certain liabilities, including certain liabilities arising under the Securities
Act, or to contribute to payments that the Placement Agent may be required to make for these liabilities.
Determination
of Offering Price and Warrant Exercise Price
The
actual offering price of the securities we are offering, and the exercise price of the warrants included in the units and pre-funded
units that we are offering, were negotiated between us
and the investors in the offering
based
on the trading of our shares of common stock prior to the offering, among other things. Other factors considered in determining
the public offering price of the securities we are offering, as well as the exercise price of the warrants included in the units
and pre-funded units that we are offering include our history and prospects, the stage of development of our business, our business
plans for the future and the extent to which they have been implemented, an assessment of our management, the general conditions
of the securities markets at the time of the offering and such other factors as were deemed relevant.
Electronic
Offer, Sale and Distribution of Securities
A
prospectus in electronic format may be made available on the websites maintained by the Placement Agent, if any, participating
in this offering and the Placement Agent may distribute prospectuses electronically. Other than the prospectus in electronic format,
the information on these websites is not part of this prospectus or the registration statement of which this prospectus forms a
part, has not been approved or endorsed by us or the Placement Agent, and should not be relied upon by investors.
40
Other
Relationships
The Placement Agent and
its respective affiliates will be full service financial institutions engaged in various activities, which may include securities
trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment
hedging, financing and brokerage activities.
The Placement Agent and its respective
affiliates may also in the future engage in investment banking and other commercial dealings in the ordinary course of business
with us or our affiliates, for which they would receive customary compensation.
The Placement Agent has
acted as sales agent pursuant to the At The Market Offering Agreement, dated February 1, 2022 and has acted as placement agent
for our February 2022 registered direct offering, for which it received compensation.
From time to time, the
Placement Agent may provide in the future various advisory, investment and commercial banking and other services to us in the ordinary
course of business, for which they may receive customary fees and commissions. However, except as disclosed in this prospectus,
we have no present arrangements with the Placement Agent for any further services.
Listing
Our shares of common stock are listed on the Nasdaq Capital Market
under the symbol "TBLT." Our Series A Warrants are listed on the Nasdaq Capital Market under the symbol "TBLTW."
EXPERTS
Our consolidated financial statements for the fiscal years ended
December 31, 2021 and 2020 included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and incorporated
by reference into this prospectus have been audited by Marcum LLP, an independent registered public accounting firm, as stated
in their report, which is incorporated herein by reference. Such consolidated financial statements have been so incorporated in
reliance upon the report of such firm (which report expresses an unqualified opinion and includes an explanatory paragraph regarding
the Company's going concern uncertainty) given upon their authority as experts in auditing and accounting.
LEGAL MATTERS
Certain legal matters
with respect to the validity of the securities being offered by this prospectus will be passed upon by Carmel, Milazzo & Feil
LLP, New York, New York. Ellenoff Grossman & Schole LLP, New York, New York, is acting as counsel for the representatives of
the Placement Agent with respect to the offering.
INCORPORATION OF CERTAIN INFORMATION BY
REFERENCE
This
prospectus omits some information contained in the registration statement in accordance with SEC rules and regulations. You should
review the information and exhibits included in the registration statement of which this prospectus is a part for further information
about us and the securities we are offering. Statements in this prospectus concerning any document we filed as an exhibit to the
registration statement or that we otherwise filed with the SEC are not intended to be comprehensive and are qualified by reference
to these filings. You should review the complete document to evaluate these statements.
The SEC allows us to "incorporate
by reference" information we file with it, which means that we can disclose important information to you by referring you
to other documents. The information incorporated by reference is considered to be a part of this prospectus. Information contained
in this prospectus supersedes information incorporated by reference that we have filed with the SEC prior to the date of this prospectus.
41
We incorporate by reference
the following documents listed below (excluding any document or portion thereof to the extent such disclosure is furnished and
not filed):
·
Our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC on April 18, 2022;
·
Our Current Reports on Form 8-K filed with the SEC on February 15, 2022, February 17, 2022, February 23, 2022, April 4, 2022,
April 18, 2022, April 25, 2022, April 27, 2022;
·
Our Preliminary Proxy Statement on Schedule 14A filed with the SEC on and February 22, 2022; and
·
Our Definitive Proxy Statement on Schedule 14A filed with the SEC on January 10, 2022 and March 4,
2022;
Information
in the documents referred to above that are incorporated by reference in this prospectus were filed prior to the 1-for-150 reverse
split of our common stock that was effective on April 25, 2022 and do not reflect the effects of such reverse stock split.
This prospectus forms
part of a registration statement on Form S-1 that we filed with the SEC. This prospectus does not contain all of the information
set forth in the registration statement and the exhibits to the registration statement or the documents incorporated by reference
herein and therein. For further information with respect to us and the securities that we are offering under this prospectus, we
refer you to the registration statement and the exhibits and schedules filed as a part of the registration statement and the documents
incorporated by reference herein and therein. You should rely only on the information incorporated by reference or provided in
this prospectus and registration statement. We have not authorized anyone else to provide you with different information. You should
not assume that the information in this prospectus and the documents incorporated by reference herein and therein is accurate as
of any date other than the respective dates thereof.
All reports and other
documents we subsequently file pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act prior to the termination of this
offering, including all such documents we may file with the SEC after the date of the initial registration statement and prior
to the effectiveness of the registration statement, but excluding any information furnished to, rather than filed with, the SEC,
will also be incorporated by reference into this prospectus and deemed to be part of this prospectus from the date of the filing
of such reports and documents.
Any information in any
of the foregoing documents will automatically be deemed to be modified or superseded to the extent that information in this prospectus
or in a later filed document that is incorporated or deemed to be incorporated herein by reference modifies or replaces such information.
Upon written or oral request,
we will provide you without charge a copy of any or all of the documents that are incorporated by reference into this prospectus
including but limited to financial statement information and exhibits which are specifically incorporated by reference into such
documents. Requests should be directed to: ToughBuilt Industries, Inc., Attention: Martin Galstyan, CFO, 25371 Commercentre Drive,
Suite 200, Lake Forest, CA 92630, martin.g@toughbuilt.com or (949) 528-3100. You may access this information https://ir.toughbuilt.com/all-sec-filings.
Except for the specific incorporated documents listed above, no information available on or through our website shall be deemed
to be incorporated in this prospectus or the registration statement of which it forms a part.
The SEC maintains an internet
website that contains reports, proxy and information statements and other information regarding the issuers that file electronically
with the SEC, including the Company, and can be accessed free of charge on the SEC's website, http://www.sec.gov.
WHERE YOU CAN FIND MORE INFORMATION
We have filed with the
SEC a registration statement on Form S-1 under the Securities Act with respect to the securities offered by this prospectus. This
prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration
statement, some of which is contained in exhibits to the registration statement as permitted by the rules and regulations of the
SEC. For further information with respect to us and our securities, we refer you to the registration statement, including the exhibits
filed as a part of the registration statement. Statements contained in this prospectus concerning the contents of any contract
or any other document is not necessarily complete. If a contract or document has been filed as an exhibit to the registration statement,
please see the copy of the contract or document that has been filed. Each statement in this prospectus relating to a contract or
document filed as an exhibit is qualified in all respects by the filed exhibit. You may obtain copies of this information by mail
from the Public Reference Section of the SEC, 100 F Street, N.E., Room 1580, Washington, D.C. 20549, at prescribed rates. You may
obtain information on the operation of the public reference rooms by calling the SEC at 1-800-SEC-0330. The SEC also maintains
an Internet website that contains reports, proxy statements and other information about issuers, like us, that file electronically
with the SEC. The address of that website is located at http://www.sec.gov.
42
We are subject to the
information and reporting requirements of the Exchange Act and, in accordance with this law, are required to file periodic reports,
proxy statements and other information with the SEC. These periodic reports, proxy statements and other information are available
for inspection and copying at the SEC's public reference facilities and the website of the SEC referred to above. We also
maintain a website at
www.toughbuilt.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.
FINANCIAL STATEMENTS
See Part II. Item 8. Financial Statements and Supplementary Data
of our 2021 Form 10-K. See "
Incorporation of Certain Information by Reference
."
43
ToughBuilt Industries, Inc.
_________ Units, Each Unit Consisting of
One Share of Common Stock and One Warrant to Purchase One Share of Common Stock
_________ Pre-funded Units, Each Pre-funded
Unit Consisting of One Pre-funded Warrant to Purchase One Share of Common Stock and One Warrant to Purchase One Share of Common
Stock
Placement Agent Warrants to Purchase _________
Shares of Common Stock
PROSPECTUS
H.C. Wainwright & Co.
The date of this prospectus is ____________,
2022
Part
II
INFORMATION
NOT REQUIRED IN PROSPECTUS
Item 13. Other
Expenses of Issuance and Distribution.
The following table indicates
the expenses to be incurred in connection with the offering described in this registration statement, other than Placement Agent
fees, all of which will be paid by us. All amounts are estimated except the Securities and Exchange Commission ("SEC")
registration fee.
Amount
SEC registration fee
$
*
Accountants' fees and expenses
*
Legal fees and expenses
*
Printing and engraving expenses
*
Miscellaneous
*
Total expenses
$
*
*To be provided by
amendment.
Item 14. Indemnification
of Directors and Officers.
The Company's Articles
of Incorporation and Bylaws provide that, to the fullest extent permitted by the laws of the State of Nevada, any officer or director
of the Company, who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit
or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he or she is or was or has
agreed to serve at the request of the Company as a director, officer, employee or agent of the Company, or while serving as a director
or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee
or agent (which, for purposes hereof, shall include a trustee, partner or manager or similar capacity) of another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise, or by reason of any action alleged to have been taken
or omitted in such capacity. For the avoidance of doubt, the foregoing indemnification obligation includes, without limitation,
claims for monetary damages against Indemnitee to the fullest extent permitted under Section 78.7502 of the Nevada Revised Statutes
as in existence on the date hereof.
The indemnification provided
shall be from and against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually
and reasonably incurred by the indemnitee or on the indemnitee's behalf in connection with such action, suit or proceeding
and any appeal therefrom, but shall only be provided if the indemnitee acted in good faith and in a manner the indemnitee reasonably
believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action, suit or proceeding,
had no reasonable cause to believe the indemnitee's conduct was unlawful.
In the case of any threatened,
pending or completed action or suit by or in the right of the Company to procure a judgment in its favor by reason of the fact
that he or she is or was a director, officer, employee or agent of the Company, or while serving as a director or officer of the
Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, no indemnification shall be made in
respect of any claim, issue or matter as to which the indemnitee shall have been adjudged to be liable to the Company unless, and
only to the extent that, the Nevada courts or the court in which such action or suit was brought shall determine upon application
that, despite the adjudication of liability but in view of all the circumstances of the case, the indemnitee is fairly and reasonably
entitled to indemnity for such expenses which the Nevada courts or such other court shall deem proper.
The termination of any
action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall
not, of itself, create a presumption that he or she did not act in good faith and in a manner which Indemnitee reasonably believed
to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had reasonable
cause to believe that the indemnitee's conduct was unlawful.
II-
1
To the extent that indemnification
for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling our company pursuant
to the foregoing provisions, we have been informed that, in the opinion of the SEC, such indemnification is against public policy
as expressed in the Securities Act and is therefore unenforceable. If a claim for indemnification against such liabilities (other
than the payment by us of expenses incurred or paid by a director, officer or controlling person of our company in the successful
defense of any action, suit or proceeding) is asserted by any of our directors, officers or controlling persons in connection with
the securities being registered, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such indemnification by us is against public policy as expressed
in the Securities Act and will be governed by the final adjudication of that issue.
In any placement agent
agreement we enter into in connection with the sale of the securities being registered hereby, the Placement Agent will agree to
indemnify, under certain conditions, us, our directors, our officers and persons who control us within the meaning of the Securities
Act of 1933, as amended, or the Securities Act, against certain liabilities.
Item 15. Recent Sales of Unregistered Securities.
Set forth below is information
regarding shares of capital stock issued by us within the past three years which were not registered under the Securities Act.
Issuance of Warrants
As previously reported
by the Company on a Current Report on Form 8-K filed with the SEC on February 17, 2022, on February 15, 2022, the Company entered
into the February Purchase Agreement with institutional investors named therein, pursuant to which the Company issued, in a registered
direct offering, an aggregate of $5,000,000 of Preferred Stock (split evenly among Series F and Series G, the "Preferred
Stock"). The shares of Preferred Stock have a stated value of $1,000 per share and are convertible, following the date of
the issuance thereof, into an aggregate of 83,334 shares of common stock of the Company upon the conversion of Series F and into
an aggregate of 83,334 shares of common stock of the Company upon the conversion of Series G, at a conversion price of $30 per
share each. Though the Preferred Stock and the underlying shares of common stock were offered pursuant to the Second Form S-3,
in a concurrent private placement, the Company also issued to such investors unregistered warrants (the "February Warrants")
to purchase up to an aggregate of 125,000 shares of the Company's common stock, at an exercise price of $37.65 per share.
The February Warrants
will be exercisable on the date that is the later of (a) the consummation of either a stockholder vote on the proposal to authorize
the Board to effect a reverse stock split (the "Reverse Stock Split") or increase the authorized shares of the Company's
common stock; and (b) six months after the date of issuance and will have a term of 5 years from the initial exercise date. The
offering closed on February 15, 2022.
As compensation to Wainwright,
as the exclusive placement agent in connection with the offering, the Company paid Wainwright a cash fee of 7% of the aggregate
gross proceeds raised in the February Direct Offering, plus a management fee equal to 0.5% of the gross proceeds raised in the
offering and reimbursement of certain expenses and legal fees. The Company also issued to designees of Wainwright warrants to purchase
up to 10,000 shares of Common Stock (the "Wainwright February Warrants"). The Wainwright February Warrants are exercisable
for $37.50 per share and become exercisable on the date that is the later of (a) the consummation of either a stockholder vote
on the proposal to authorize the Company's Board to effect a Reverse Stock Split or increase the authorized shares of the
Company's common stock; and (b) six months after the date of issuance and will expire on February 15, 2027.
The Company received net
proceeds of approximately $4,350,000 from the offering, after deducting the estimated offering expenses payable by the Company,
including the fees payable to Wainwright.
The Company issued the February Warrants and
the Wainwright February Warrants pursuant to the exemption from the registration requirements of the Securities Act, available
under Section 4(a)(2) and/or Rule 506(b) of Regulation D promulgated thereunder.
Issuance of Series E Preferred Stock
As previously reported
by the Company on Forms 8-K filed with the SEC on November 23, 2020 and April 1, 2021, on November 20, 2020, an institutional investor
(the "Investor") exchanged its Series A Senior Secured Convertible Note, Series B Senior Convertible Note, and common
stock purchase warrants originally purchased pursuant to a Securities Purchase Agreement, dated August 19, 2019 (the "Exchange
Agreement"). Pursuant to the Exchange Agreement, the Investor exchanged its securities and agreed to extinguish its first
priority lien on all of the assets of the Company for (i) a cash payment of $744,972; (ii) 12,334 shares of the Company's
common stock; (iii) a warrant to purchase up to an aggregate of 3,834 shares of the common stock for $150 per share, subject to
anti-dilution protection, until August 19, 2024; and (iv) nine shares of Series E Non-Convertible Preferred Stock (the "Series
E Preferred Stock") of the Company. On March 26, 2021, the Company issued nine shares of such Series E Preferred Stock to
the Investor. The Company issued foregoing shares of common stock, warrant and Series E Preferred Stock in reliance upon Section
3(a)(9) of the Securities Act as involving an exchange by the Company exclusively with its security holders. On February 15, 2022,
the number of warrant shares issuable upon the exercise of the warrant was increased to 76,667 and the exercise price was amended
to $7.50 per share (as adjusted for the 1-for-150 Reverse Stock Split on April 25, 2022).
II-
2
Item 16. Exhibits and Financial Statement Schedules.
(a)
Exhibits
:
Reference is made to the Exhibit Index following the signature pages hereto, which Exhibit Index is hereby incorporated into this
Item.
(b)
Financial Statement
Schedules
: All schedules are omitted because the required information is inapplicable, or the information is presented
in the financial statements and the related notes.
Item 17. Undertakings.
The undersigned registrant
hereby undertakes:
(1) To file, during any
period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i) To include any prospectus
required by section 10(a)(3) of the Securities Act of 1933, as amended (the "Securities Act");
(ii) To reflect in the
prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the
registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar
value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated
maximum offering range may be reflected in the form of prospectus filed with the Securities and Exchange Commission pursuant to
Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement; and
(iii) To include any material
information with respect to the plan of distribution not previously disclosed in the registration statement or any material change
to such information in the registration statement; provided, however, that paragraphs (1)(i), (1)(ii) and (1)(iii) above do not
apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed
with or furnished to the Securities and Exchange Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities
Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus
filed pursuant to Rule 424(b) that is part of the registration statement.
(2) That, for the purpose
of determining any liability under the Securities Act, each such post-effective amendment 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.
(3) To remove from registration
by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
II-
3
(4) That, for the purpose
of determining liability under the Securities Act to any purchaser:
(A) Each prospectus filed
by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed
prospectus was deemed part of and included in the registration statement; and
(B) Each prospectus filed
pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying
on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration
statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement
or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference
into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of
contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus
that was part of the registration statement or made in any such document immediately prior to such date of first use.
(5) That for the purpose
of determining liability of the registrant under the Securities Act to any purchaser in the initial distribution of securities,
the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration
statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or
sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser
and will be considered to offer or sell such securities to such purchaser:
(i) Any preliminary prospectus
or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
(ii) Any free writing
prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned
registrant;
(iii) The portion of any
other free writing prospectus relating to the offering containing material information about the undersigned registrant or its
securities provided by or on behalf of the undersigned registrant; and
(iv) Any other communication
that is an offer in the offering made by the undersigned registrant to the purchaser.
Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant
pursuant to any charter provision, by law or otherwise, the registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other than 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 Securities Act and will
be governed by the final adjudication of such issue.
The undersigned registrant
hereby undertakes that:
(1) For purposes of determining
any liability under the Securities Act, 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, 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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EXHIBIT
INDEX
Exhibit
No
.
:
Description of Exhibit:
Previously Filed and Incorporated
by Reference herein:
Date Filed:
1.1
At The Market Offering Agreement, dated December 7, 2020, between ToughBuilt Industries, Inc. and H.C. Wainwright & Co., LLC
Exhibit 1.1 to Registration Statement on Form S-3 (File No. 333-251185)
December 7, 2020
1.2
At The Market Offering Agreement, dated February 1, 2021, between ToughBuilt Industries, Inc. and H.C. Wainwright & Co., LLC
Exhibit 1.1 to Registration Statement on Form S-3 (File No: 333-252630)
February 2, 2021
3.1
Articles of Incorporation, dated April 9, 2012
Exhibit 3.1 to Registration Statement on Form S-1
July 9, 2018
3.1.2
Certificate of Amendment, dated December 29, 2015
Exhibit 3.1 to Registration Statement on Form S-1
July 9, 2018
3.1.3
Certificate of Change Pursuant to NRS 78.209, dated October 5, 2016
Exhibit 3.1 to Registration Statement on Form S-1
July 9, 2018
3.1.4
Certificate of Change Pursuant to NRS 78.209, dated September 13, 2018
Exhibit 3.4 to Registration Statement on Form S-1/A
September 19, 2018
3.1.5
Certificate of Designations of Class B Convertible Preferred Stock, dated October 5, 2016
Exhibit 3.3 to Registration Statement on Form S-1
July 9, 2018
3.1.6
Certificate of Amendment to the Certificate of Incorporation, dated January 17, 2020
Exhibit 3.1 to Current Report on Form 8-K
January 17, 2020
3.1.7
Certificate of Designation of Series E Non-Convertible Preferred Stock dated as of March 26, 2021
Exhibit 3.1 to Current Report on Form 8-K
April 1, 2021
3.1.8
Certificate of Designations of Series F Convertible Preferred Stock dated as of February 15, 2022
Exhibit 3.1 to Current Report on Form 8-K
February 17, 2022
3.1.9
Certificate of Designations of Series G Convertible Preferred Stock dated as of February 15, 2022
Exhibit 3.2 to Current Report on Form 8-K
February 17, 2022
3.1.10
Certificate of Amendment to the Articles of Incorporated, dated as of April 22, 2022
Exhibit 3.1 to Current Report on Form 8-K
April 22, 2022
3.2
Amended and Restated Bylaws, dated July 6, 2016
Exhibit 3.2 to Registration Statement on Form S-1
July 9, 2018
4.1
Warrant, dated November 20, 2020, issued by ToughBuilt Industries, Inc. to the Investor
Exhibit 4.1 to Current Report on Form 8-K
November 23, 2020
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Exhibit
No
.
:
Description of Exhibit:
Previously Filed and Incorporated
by Reference herein:
Date Filed:
4.2
Form of Common Warrant dated as of July 14, 2021, issued by ToughBuilt Industries, Inc. to certain purchasers
Exhibit 4.1 to Current Report on Form 8-K
July 14, 2021
4.3
Form of Placement Agent Warrant dated as of July 14, 2021, issued by ToughBuilt Industries, Inc. to H.C. Wainwright & Co., LLC
Exhibit 4.2 to Current Report on Form 8-K
July 14, 2021
4.4
Form of Common Warrant dated as of February 15, 2022, issued by ToughBuilt Industries, Inc. to certain purchasers
Exhibit 4.1 to Current Report on Form 8-K
February 17, 2022
4.5
Form of Placement Agent Warrant dated as of February 15, 2022, issued by ToughBuilt Industries, Inc. to H.C. Wainwright & Co., LLC
Exhibit 4.2 to Current Report on Form 8-K
February 17, 2022
4.6*
Form of Warrant underlying Unit offered hereby
4.7*
Form of pre-funded warrant underlying pre-funded unit offered hereby
4.8*
Form of Placement Agent Warrant offered hereby
5.1**
Opinion of Carmel, Milazzo & Feil LLP
10.1#
Employment Agreement dated as of January 3, 2017 by and between ToughBuilt Industries, Inc. and Michael Panosian
Exhibit 10.3 to Registration Statement on Form S-1
July 9, 2018
10.2#
Employment Agreement dated as of January 3, 2017 by and between ToughBuilt Industries, Inc. and Zareh Khachatoorian
Exhibit 10.4 to Registration Statement on Form S-1
July 9, 2018
10.3#
Employment Agreement dated as of January 3, 2017 by and between ToughBuilt Industries, Inc. and Josh Keeler
Exhibit 10.6 to Registration Statement on Form S-1
July 9, 2018
10.4#
Exchange Agreement, dated November 20, 2020, between ToughBuilt Industries, Inc. and the Investor
Exhibit 10.1 to Current Report on Form 8-K
November 23, 2020
10.5
Form of Securities Purchase Agreement dated as of July 11, 2021, by and between ToughBuilt Industries, Inc. and certain purchasers
Exhibit 10.1 to Current Report on Form 8-K
July 14, 2021
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Exhibit
No
.
:
Description of Exhibit:
Previously Filed and Incorporated
by Reference herein:
Date Filed:
10.6
Form of Securities Purchase Agreement dated as of February 15, 2022, by and between ToughBuilt Industries, Inc. and certain purchasers
Exhibit 10.1 to Current Report on Form 8-K
February 17, 2022
10.7
Form of Letter Agreement dated as of February 18, 2022, between ToughBuilt Industries, Inc. and the purchasers pursuant to the Securities Purchase Agreement dated as of February 15, 2022
Exhibit 10.1 to Current Report on Form 8-K
February 23, 2022
10.8*
Form of Securities Purchase Agreement
10.9*
Form of Lock-up Agreement
14.1
Code of Ethics
Exhibit 14.1 to Registration Statement on Form S-1
July 9, 2018
21.1
List of Subsidiaries
Exhibit 21.1 to Current Report on Form 10-K
April 18, 2022
23.1*
Consent of Marcum LLP
23.3**
Consent of Carmel, Milazzo & Feil LLP (included in Exhibit 5.1)
24.1*
Power of Attorney (included on signature page)
99.1
Audit Committee Charter
Exhibit 99.1 to Registration Statement on Form S-1
July 9, 2018
99.2
Compensation Committee Charter
Exhibit 99.2 to Registration Statement on Form S-1
July 9, 2018
99.3
Nominating and Corporate Governance Committee Charter
Exhibit 99.3 to Registration Statement on Form S-1
July 9, 2018
99.4
Whistleblower Policy
Exhibit 99.4 to Registration Statement on Form S-1
July 9, 2018
107 *
Filing Fee Table
# Management contract or compensatory plan.
*Filed herewith
**To be filed by amendment.
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SIGNATURES
Pursuant to the requirements
of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
TOUGHBUILT INDUSTRIES
,
INC
.
Dated: May 13, 2022
/s/
Michael Panosian
Michael Panosian
President, Chief Executive Officer and Chairman of the Board of Directors
(Principal Executive Officer)
POWER OF ATTORNEY
KNOW ALL MEN BY THESE
PRESENTS, that each person whose signature appears below constitutes and appoints Michael Panosian and Martin Galstyan 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, this Registration Statement has been signed by the following persons in the capacities and on the
dates indicated.
Signature
Title
Date
/s/ Michael Panosian
President, Chief Executive Officer and
        Chairman of the Board of Directors
(Principal Executive Officer)
May 13, 2022
Michael Panosian
/s/ Martin Galstyan
Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)
May 13, 2022
Martin Galstyan
/s/ Robert Faught
Director
May 13, 2022
Robert Faught
/s/ Linda Moossaian
Director
May 13, 2022
Linda Moossaian
/s/ William Placke
Director
May 13, 2022
William Placke
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